MGMT 1P93 Lecture Notes - Lecture 8: Money Market Fund, United States Treasury Security, Current Liability
5 Mar 2017
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Finance lecture 8 notes march 4, 2017: evaluate financial performance, plan financial resources, manage working capital, evaluate investment opportunities, determine appropriate strategies. Historically, the goal of the firm has been to maximize the value of the firm to its shareholders but also a commitment to meeting social responsibilities can contribute to profit. Financial ratios provide insight into financial strength and weaknesses. Use financial data from balance sheet and income statement. Companies can compare their ratios with other businesses (or historical comparisons from previous years) Computing ratios that can compare values of key accounts listed on a firms financial statements. Liquidity: measures ability to pay short-term liabilities as they come due. Asset management: measures how effectively a firm is using its assets to generate revenue. Leverage: measures the extent to which a firm relies on debt to meet its financing needs. How quickly a firm sells its inventory to generate revenue.
