The company should be able to ensure that their accounts receivables turnover is quicker. The company should ensure that its credit policy is not too lenient since it might in order to not have a lot of cash stuck in receivables.
Investors are the main users of this information because they are concerned about how much money they will get per share if they invest in this certain corporation.
Looking at the net profit margin, we can say that 3.
At the same time, the company can capitalize on this aspect and increase its revenues Users of this information are company managers and owners because they are the ones looking at the firms ability to transform sales dollars into profit.
When an investor purchases a stock they are becoming the owner of the company.
There are five widely accepted types of financial ratios that a firm utilizes to gain a meaningful understanding of a financial statement: short-term liquidity ratios, efficiency ratios, leverage ratios, profitability ratios, and market-value indicators