Assignment 1: DiscussionCase Study: General Machinery Ltd
Ratio analysis is a method used to analyze the financial reports of a company and interpret trends in the company’s performance. As a nonaccounting manager you use numerous ratios to analyze your company’s performance year-by-year and benchmark the performance to industry averages to an individual competitor’s performance or against a predetermined target.
For this assignment read Case study question 7.2: General Machinery Ltd on page 168 in chapter 7 of our textbookAccounting for Managers: Interpreting Accounting Information for Decision Making. Using the data from the case study repond to the tasks below.
Tasks:
Consider the following scenario for this assignment: You are an external investor who is considering General Machinery as one of the potential companies for investment. Respond to the following in your initial discussion post:
Other than the computations used in ratio analysis what else is necessary to properly analyze a company for investment?