Title: Assess the financial strength of a business and its effect on the business, industry, and economy.
Course: Accounting, Advanced (12104-II) > Section: Analyzing Financial Data

Assessment should use comparative company and industry data to determine

- liquidity ratios
  - current ratio
  - quick ratio
  - working capital
  - interest coverage
- asset management ratios
  - accounts receivable turnover
  - average collection ratio
  - inventory turnover
  - asset turnover
- debt management ratios
  - debt to total assets
  - debt to stockholders’ equity
  - times interest earned
  - interest coverage ratio
- profitability ratios
  - gross and net profit ratios
  - return on sales
  - rate of return on total assets
  - return on equity, earnings per share
  - price/earnings ratio.