Discussion Post: Financial Statement Analysis
Select one type of creditor or investor from the list below:
• vendor (supplier of goods or products)
• bank providing short-term financing
• bank providing long-term loan (10 years or more)
• bond investor
• investor in common stock
Discuss at least three specific financial ratios that creditors or investors would be most interested in when analyzing financial statements, and why. Embed course material concepts, principles, and theories (requires supporting citations) along with at least one scholarly, peer-reviewed reference in supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references. You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor's response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn't fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
Reference:
1) Chapter 16 in Managerial Accounting
2) Ding, K., Peng, X., & Wang, Y. (2019). A machine learning-based peer selection method with financial ratios. Accounting Horizons, 33(3), 75-87.
3) Corporate Finance Institute (2015-2021). Analysis of financial statements: Guide to analyizing financial statements for financial analysts.