Financial managers use _____ to assess the financial strengths and weaknesses of their firm.
A) portfolio analysis
B) value stream mapping
C) balance sheets
D) financial ratio analysis

Question

Quizplus · Accepted Answer

Financial ratio analysis is a tool used by financial managers to assess the financial strengths and weaknesses of their firm. This involves analyzing various financial ratios such as liquidity ratios, profitability ratios, and solvency ratios to gain insight into the company's financial health. Portfolio analysis is used in investment management, value stream mapping is used in manufacturing and operations management, and balance sheets are a source of financial data used in financial ratio analysis. Therefore, the best choice is D.

Financial Managers Use _____ to Assess the Financial Strengths and Weaknesses