The four key users of financial statements are owners/managers, lenders, investors, and governments. These users rely on financial statements to evaluate a company’s past financial performance as indicators in areas of profitability, liquidity, leverage, and efficiency; to create benchmarking matrixes; and to support future decision making.
Choose 2 companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. Share your analysis and answer the following questions in a minimum of 175 words:
- What did your analysis tell you about these companies?
- What sorts of decisions would this analysis help you make (such as buying stocks, considering accepting an employment offer, etc.)?
Cite your sources in APA format.
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