PART 2

• businesses refer to their balance sheets to better understand their inventory accounts for a certain period of time

  Balance Sheet Interpretation
• WHAT ARE THE TYPES OF Balance Sheet Interpretation

  Balanced Sheet Quick Ratio

  Balanced Sheet Current Ratio

  Balanced Sheet Debt-to-Equity Ratio
• the result should be more than the value of 1 to indicate the strength of the business

  Balance Sheet Interpretation
• WHAT ARE THE TYPES OF Income Statement Interpretation

  Gross Profit Margin

  Operating Profit Margin

  Net Profit Margin
• It is a lower percentage could indicate that the business is underpricing its products and services. [Sales – Cost of Goods Sold (COGS) / Sales]

  Gross Profit Margin
• It is used to gauge the operational efficiency of the business. (Operating Income / Total Sales)

  Operating Profit Margin
• this metric measures the amount of each peso of sales that a business has after paying all of its expenses. (Net Income / Total Sales Revenue)

  Net Profit Margin
• It is to gauges the ability of the business to meet its obligations without selling off the inventory. (Current Assets – Inventories / Current Liabilities)

  Balanced Sheet Quick Ratio
• it is a test of the business’s short-term liquidity. (Current Assets / Current Liabilities)

  Balanced Sheet Current Ratio
• It is used to measure the aggressiveness of the business.

  Balanced Sheet Debt-to-Equity Ratio
• It is basically provides how a business has been able to raise its money or capital and how those funds have been spent during a certain period of time

  Cash Flow Interpretation
• what are the Income Statement Interpretation

  Cash from Business Operation

  Cash from Investing

  Cash from Financing Activities
• this pertains to the cash or amount of money derived from the business’s key operations. It refers to the earnings of the business before interests and taxes

  Cash from Business Operation
• this mainly refers to cash that is utilized in new investments as well as those that were obtained from previous investments.


  Cash from Investing
• refers to the flow of cash from the financing activities of the business that include transactions involving debt, equity, and dividends

  Cash from Financing Activities