or this discussion forum, we will be exploring the importance of financial ratio analysis in strategic planning. Before posting to this forum, you should read the following overview of financial ratio analysis:
Also, if you need a review on how to interpret financial statements, you might want to review the Merrill Lynch publication on “How to Read a Financial Report” which is located in the Supplemental Readings folder under Course Documents. Then, let’s begin the discussion with the following questions:
1. Why is it important to conduct financial ratio analysis?
2. What is the role of historical trend analysis?
3. Why is it important to conduct comparisons to industry averages and industry leaders?
4. How might you use financial ratios analysis in the GL0-BUS Simulation?