Question Description
Select one type of creditor or investor from the list below:
- vendor (supplier of goods or products)
- bank providing short-term financing
- bank providing long-term loan (10 years or more)
- bond investor
- investor in common stock
Discuss at least three specific financial ratios that creditors or investors would be most interested in when analyzing financial statements, and why.
Embed course material concepts, principles, and theories (requires supporting citations) along with at least one scholarly, peer-reviewed reference in supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.
Required
- Chapter 16 in Managerial Accounting
- Ding, K., Peng, X., & Wang, Y. (2019). A machine learning-based peer selection method with financial ratios. Accounting Horizons, 33(3), 7587.
Recommended
- Chapter 16 PowerPoint slides in Managerial Accounting
- Chalamandaris, G., & Vlachogiannakis, N. E. (2018). Are financial ratios relevant for trading credit risk? Evidence from the CDS market. Annals of Operations Research, 266(1/2), 395440.
- Liu, G. (2019). Business financial benchmarking. Online Searcher, 43(1), 4045.