Financial Statement Analysis Essay

IntroductionThe use of financial ratio is very common in history and finance process. These ratios argon used for evaluation of a business deed, as well as identifying electric potential problems. Each ratio is used to inform about various factors like the solvency, earning power, and debt load of the business. These ratios measure the human relationship arising between two or more modules of the financial statements and pose a greater meaning if the results are compared to industry standards of businesses with same size and activity.There are various types of ratios including return or profitability ratios, which say information regarding the managements performance in the usage of resources. The other ratio example is fluidness ratio, which are used to demonstrate the business ability to pay its present obligations. This measures in short and eagle-eyed term views. The other ratio is the leverage, which examines the extent in which a participation has depended on borrowing so that it can finance its operations. The other ratio is the efficiency ratio, which assesses the firms credit use, assets, and inventory (Libby, Libby, & Short, 2011).Identifying the confederacy using the exhibits1 IT service provider2 Retail grocery stores3 Commercial airlines4 Pharmaceutical preparations5 Liquor producer and distributor6 Mobile Phone service Providers7 Semiconductor manufacturers8 Computer software9 Commercial banking10 integrated Oil and shooterConclusionThe 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). Financial accoun ting. New York McGraw-Hill/Irwin.