Financial Statement Analysis Essay

IntroductionThe use of financial dimension is very parking lot in accounting and finance process. These ratios are used for evaluation of a trade performance, as well as identifying potential problems. Each ratio is used to inform about various factors like the solvency, earning power, and debt load of the business. These ratios treasure the relationship arising between two or more modules of the financial statements and stay a greater meaning if the results are compared to industry standards of businesses with same size of it and activity.There are various types of ratios including return or profit force ratios, which reach out information regarding the managements performance in the usage of resources. The otherwise ratio example is liquidity ratio, which are used to demonst value the business ability to pay its present obligations. This measures in short and long barrier views. The other ratio is the leverage, which examines the extent in which a company has depended on b orrowing so that it can finance its operations. The other ratio is the qualification ratio, which assesses the firms credit use, assets, and inventory (Libby, Libby, & Short, 2011).Identifying the company using the exhibits1 IT service provider2 Retail grocery stores3 commercialised airlines4 Pharmaceutical preparations5 Liquor producer and distributor6 Mobile Phone service Providers7 Semiconductor manufacturers8 computer software9 Commercial banking10 integrated Oil and hitmanConclusionThe use of ratios is a very important aspect for the firm. It helps in offering information regarding the managements performance in the usage of resources, demonstrating the business ability to pay its present obligations, examining the extent in which a company has depended on borrowing so that it can finance its operations, and assessing the firms credit use, assets, and inventory. This makes it possible to rate the companys success.ReferencesLibby, R., Libby, P. A., & Short, D. G. (2011). Fin ancial accounting. New York McGraw-Hill/Irwin.