Análisis Financiero

Why is financial analysis crucial for your business?

• To identify trends in income and expenses

• To predict the weather and stuff

• To measure water temperature in the enterprise

• To tell jokes about the manager

What do a company's financial statements provide?

• A snapshot of the company's financial position

• It only shows the money we have in our bank account

• It is only to control the inventory

• Weather forecasts

What do liquidity ratios measure?

• The amount of water in a glass

• The ability of a company to meet short-term obligations

• The money we owe to anyone

• The speed of the water in the enterprise

What does the Return on Equity (ROE) ratio measure?

• How much profit a company generates for each dollar of shareholders' equity

• How much money we spent in a year

• The distance covered in a race

• The number pieces we have in the inventory

What do solvency ratios evaluate?

• The ability of a company to meet long-term obligations

• The amount of money we have spent

• The amount of debt we have in the present

• The speed at which we spend money

What is horizontal analysis?

• Comparing the size of two objects

• Comparing financial data from one period to another

• Comparing the money our clients haven't yet pai

• Comparing income versus expenses

What is an important key performance indicator (KPI)?

• The taste of an ice cream

• The growth of revenues

• The number of shoes in a closet

• The favorite color of a person

What can be inferred if a debt to equity ratio is high?

• That the company has many products

• That the company has many clients

• That the company relies too much on debt financing

• That the company has many employees

What can be inferred if the operating cash flow is negative?

• That the company does not need cash

• That the company is having difficulty generating enough cash to cover its expenses

• That the company has a large amount of cash

• That the company has an excess of cash

Why is financial analysis important for a business strategy?

• Provides cooking recipes

• Provides valuable information about the financial health of a company

• Provides information about the government

• Provides travel tips