BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Three ratios are used to measure financial solvency: the equity-to-asset ratio, the debt-to-asset ratio, and the debt-to-equity or leverage ratio.

Detailed explanation-2: -To accurately evaluate the financial health and long-term sustainability of a company, several financial metrics must be considered in tandem. The four main areas of financial health that should be examined are liquidity, solvency, profitability, and operating efficiency.

Detailed explanation-3: -Determine total assets by combining your liabilities with your equity. Since liabilities represent a negative value, the simplest method for finding total assets with this formula is to subtract the value of liabilities from the value of equity or assets. The resulting figure equals your total assets.

Detailed explanation-4: -Why Is Financial Performance Important? A company’s financial performance tells investors about its general well-being. It’s a snapshot of its economic health and the job its management is doing-providing insight into the future: whether its operations and profits are on track to grow and the outlook for its stock.

Detailed explanation-5: -The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company’s financial strength and provide a quick picture of a company’s financial health and underlying value.