Tolossa Taddesse

Financial Statements Analysis: the Case of Meta-abo Brewery S.c Tolossa Taddesse

Liquidity ratios, asset management ratios, profitability ratios and debt management ratios are crucial to evaluate how well the company performs. Liquidity ratio is conveying the ability to repay short-term creditors and its total cash. These liquidity ratios are current ratio, quick ratio and absolute ratio. Asset management ratio is also measure how to effectively a company to use and controls its assets. It?s also quantified by inventory turnover ratio, working capital turnover Ratio and fixed assets turnover ratio evaluate long term solvency or leverage ratios convey a firm's ability to meet the interest costs and payment schedules of its long term obligations.