Assignment: Discussion
Managers use a variety of tools to analyze a company's financial position. Horizontal, vertical, and ratio analyses are three important tools.
• Describe how each contributes to the analysis process.
• Discuss both the mechanics of the method as well as the information gleaned.
• Please give an example of how each method might be used to make a business decision.
• Be sure to discuss what the company's information should be compared against to determine the financial health of the company.