Users

  quiz_banner-01_smaller  

Users of Financial Ratios

Stakeholders are users of financial information with an interest in better understanding a company or organization. Internal users can include division managers and executive officers. External users such as bankers and other lenders rely heavily on financial ratios when making loan and other credit decisions. Investors employ financial ratios when reviewing existing investment positions or evaluating new opportunities. Less obvious parties could include a raw material supplier who may want to gauge the quality of a new client. Ratios can be applied to charitable organization to evaluate their operating efficiency. The type and extent of financial analysis with ratios will be dependent upon the end goals of the users. N_29F_Stakeholders  

The Analyst

Financial analysts serve the role of analyzing financial data in a variety of different capacities. An analyst may specialize in some or more of the following: investment, securities, research, equity, rating, and others. Analysts may work within a company providing internal analytics or outside, using publically available information. Generally they are charged with finding value in their research so that decisions may be made. Internally, analysts may conclude, for example, that revenue is projected to increase and that staffing must be adjusted. An outside analyst may conclude that a particular stock is undervalued and therefore be purchased. Analysts typically, but not always, hold an economics, finance, or business related degree. The Chartered Financial Analyst (CFA) designation may also be obtained when certain testing and work experience requirements are made.

N_11F_Derivatives

AccountingPlay Apps

Learn Accounting Faster and Easier

Learn financial accounting, debits & credits, and business tax easier with flashcards, mobile apps, and games. Learn accounting anytime and anywhere. AccountingPlay will help you learn in a fast and fun way. Available on iOS and Android

Premium Courses

One Time Payment. Lifetime Access.