PRINCIPLES OF FINANCE
W2 Discussion "Investors and Creditors or Financial Statement Ratios" Investors and Creditors or Financial Statement Ratios
Question
Investors and creditors are typically not interested in the same thing. Investors are typically interested in whether a company is going to turn a profit over time, while a creditor is interested in short-term cash flow. Decide whether you are an investor or creditor. Choose two ratios for the type of external user you chose and discuss its importance in analyzing a company.