{"id":554,"date":"2015-04-21T22:52:49","date_gmt":"2015-04-21T22:52:49","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&#038;p=554"},"modified":"2017-03-31T18:25:36","modified_gmt":"2017-03-31T18:25:36","slug":"the-government-and-accounting-practices","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/chapter\/the-government-and-accounting-practices\/","title":{"raw":"Outcome: Financial Ratios","rendered":"Outcome: Financial Ratios"},"content":{"raw":"<h2>What you\u2019ll learn to do: use financial statements to\u00a0calculate basic financial ratios\u00a0to measure the profitability and health of a business<\/h2>\r\nFinancial ratios allow consumers of financial information to compare how companies are doing relative to their industry or even how they are faring from one period (month, quarter, year) to another.\u00a0For the\u00a0purposes of this course, you will be working with just a couple\u00a0of these ratios\u2014namely liquidity and profitability. There are lots of other financial ratios, but you can save those for a time when you take full\u00a0courses in finance and accounting.\r\n\r\nThe specific things you\u2019ll learn in this section include:\r\n<ul>\r\n \t<li>Explain how financial ratios are used<\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Calculate the current ratio using information from financial statements&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:12801,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0,&quot;15&quot;:&quot;Arial&quot;,&quot;16&quot;:12}\">Calculate the current ratio using information from financial statements<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Calculate the acid-test (quick) ratio using information from financial statements&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:12801,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0,&quot;15&quot;:&quot;Arial&quot;,&quot;16&quot;:12}\">Calculate the acid-test (quick) ratio using information from financial statements<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Calculate inventory turnover using information from financial statements&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:12801,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0,&quot;15&quot;:&quot;Arial&quot;,&quot;16&quot;:12}\">Calculate inventory turnover using information from financial statements<\/span><\/li>\r\n<\/ul>","rendered":"<h2>What you\u2019ll learn to do: use financial statements to\u00a0calculate basic financial ratios\u00a0to measure the profitability and health of a business<\/h2>\n<p>Financial ratios allow consumers of financial information to compare how companies are doing relative to their industry or even how they are faring from one period (month, quarter, year) to another.\u00a0For the\u00a0purposes of this course, you will be working with just a couple\u00a0of these ratios\u2014namely liquidity and profitability. There are lots of other financial ratios, but you can save those for a time when you take full\u00a0courses in finance and accounting.<\/p>\n<p>The specific things you\u2019ll learn in this section include:<\/p>\n<ul>\n<li>Explain how financial ratios are used<\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Calculate the current ratio using information from financial statements&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:12801,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0,&quot;15&quot;:&quot;Arial&quot;,&quot;16&quot;:12}\">Calculate the current ratio using information from financial statements<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Calculate the acid-test (quick) ratio using information from financial statements&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:12801,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0,&quot;15&quot;:&quot;Arial&quot;,&quot;16&quot;:12}\">Calculate the acid-test (quick) ratio using information from financial statements<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Calculate inventory turnover using information from financial statements&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:12801,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0,&quot;15&quot;:&quot;Arial&quot;,&quot;16&quot;:12}\">Calculate inventory turnover using information from financial statements<\/span><\/li>\n<\/ul>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-554\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Outcome: Financial Ratios. <strong>Authored by<\/strong>: Linda Williams and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":78,"menu_order":8,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Outcome: Financial Ratios\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"72fbcee3-781b-4e0c-a170-daeebe0a667e","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-554","chapter","type-chapter","status-publish","hentry"],"part":94,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/pressbooks\/v2\/chapters\/554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/wp\/v2\/users\/78"}],"version-history":[{"count":25,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/pressbooks\/v2\/chapters\/554\/revisions"}],"predecessor-version":[{"id":10662,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/pressbooks\/v2\/chapters\/554\/revisions\/10662"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/pressbooks\/v2\/parts\/94"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/pressbooks\/v2\/chapters\/554\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/wp\/v2\/media?parent=554"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=554"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/wp\/v2\/contributor?post=554"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/wp-json\/wp\/v2\/license?post=554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}