1. Discuss how financial ratios facilitate financial analysis, and be able to compute and use them to analyze a firm’s performance.
2. Describe the DuPont system of analysis and be able to use it to evaluate a firm’s performance and identify corrective actions that may be necessary.
3. Explain what benchmarks are, describe how they are prepared, and discuss why they are important in financial statement analysis.
4. What are some qualitative factors analysts should consider when evaluating a company’s likely future financial performance? What are some potential problems and limitations of financial ratio analysis?