Ratio Analysis
The concept of financial analysis involves selection, evaluation and interpretation of financial data along with other pertinent information to help in issues related to investment and decision making. Firms may use financial analysis to examine how employees perform, how efficient a firm is with regards to its operation and externally by potential investors and credit worthiness (Böhm, 2008). Major financial ratios that will used to analyze the financial health of Berrys Bug Blaster include liquidity, profitability ratio and solvency ratios. The papper will also create a horizontal and vertical analysis for the balance sheet and the income statement and a memo prepred to be presented to the CEO of Berrys Bug Blaster in which the findings from ratio calculations and horizontal and vertical analysis are discussed.
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