HOW TO ANALYZE THE FINANCIAL STATEMENT

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Published: Jan 1, 1973
DOI: https://doi.org/10.35426/IAv02n08.01

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GUILLERMO CHRISTY GUTIERREZ

Abstract

The starting point in analyzing the financial statements of commercial and industrial companies is to determine the solvency ratio (current assets divided by current liabilities). A ratio of 2:1 (200%) or more is considered favorable. This indicator, however, is not definitive, as it depends on the quality of the assets and the correct ratio of liabilities to sales.

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Issue
Vol. 2 No. 8 (1973): Journal 8
Section
Publicados
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