| Accounting: What the Numbers Mean, 5/e David H. Marshall,
Millikin University Wayne W. McManus,
International College of the Cayman Islands Daniel F. Viele,
Webster University
Fundamental Interpretations Made from Financial Statement Data
Chapter 3 Outline
Financial Ratios and Trend Analysis- Company Data Over Time
- Company Data Compared to Industry Data Over Time
Return on Investment
- Significance
- Method of Calculating
The DuPont Model--An Expansion of the ROI Calculation
- Margin and Turnover
- Significance of Model
- Rules of Thumb for ROI, Margin and Turnover
|
| | | Return on Equity and Rules of Thumb |
| | | Working Capital and Measures of Liquidity- Working Capital
- Current Ratio
- Acid-test Ratio
- Rules of Thumb for Current Ratio and Acid-test Ratio
|
| | | Illustrations of Trend Analysis- Profitability and Liquidity Data
- Return on Investment and Return on Equity
- Margin and Turnover
- Working Capital and Current Ratio
- Percent Earned on Net Worth
|
|