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Analysis of Financial Statements Using Ratios



Authors as Published

Henry J. Quesada, Associate Professor and Extension Specialist, Sustainable Biomaterials

This publication is available in an enhanced digital version and PDF.

In this publication we cover the basics of using ratio analysis to analyze financial statements. There are three main financial statements that need to be understood to evaluate the financial condition, profitability, and cash flows of any organization: the balance, the income, and the cash flow statements. In this publication, we will cover the fundamental concepts to construct and analyze these critical financial statements. Examples of each group of ratios are provided. The paper also presents a set of exercises to help the reader understanding, applying, and evaluating the materials.

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Publication Date

May 10, 2019