Banks, lenders and people (buyers) who want to purchase the specific business.
managers who want to improve or sustain the business performance
Evaluating the financial condition of an entityEvaluating stewardshipEvaluating the effectiveness of operationsDetermine the compliance of operation with directives.
The Long-Term Solvency Ratio is developed from the statement of financial position (or balance sheet) but uses this formula: (Lawrence L Martin, 2001) Financial Management for Human Services administrators states:Total assets divided by Total liabilities = Long-term solvency rationThe long-term solvency ratio should be at least 1.0 as a rule, but the higher the better
stays the same
The modern financial manager uses computer technology to develop strategies. The traditional financial manager uses research and evaluation to develop strategies.
The past repeats itself. Trend analysis uses historical patterns to forecast the future.
Trend analysis usually measures monetary changes that fall into a certain period of time line-by-line in finances. Ratio analysis uses math to figure out percentages or indicators from ratios in finances.
Uses of Financial Information System
The ratio analysis is useful for inter firm comparison which basically implies that a company compares its performance with that of its industry peers. Ratio analysis is very important in simplifying the accounting figures to make then understandable to a common man.
The analysis that uses the percent of fixed assets to total assets is called the fixed asset turnover ratio. It helps measure a company's ability to generate revenue from its fixed assets, such as property, plant, and equipment. A higher ratio indicates better utilization of fixed assets, while a lower ratio suggests inefficiency in utilizing these assets.
Evaluating the financial condition of an entityEvaluating stewardshipEvaluating the effectiveness of operationsDetermine the compliance of operation with directives.
Commercial judgment uses market place analysis and business strategy to make sound decisions to achieve financial goals and grow the business.
Employees use accounting information to learn information about the business, such as the financial health, amount of sales and profitability, and many other things.
uses of markov analysis
describe various uses of financial statements
Some uses are: Signals Analysis, DSP, cryptography, steganography, and image editing.
The Parthenon in Greece uses the golden ratio as well as the Pyramids of Giza
the internal and external users are the persons who uses the financial information , either they are directly related to the company or indirectly to their use, they are basically shareholders, debentureholders,creditors, employees and the government, financial institutions and other organisation to evaluate the status of the company.