Reply with at least 250 words citation and reference

Financial statement analysis is a vital part of a company’s performance. It shows how profitable a company is and the accuracy of its financial statements (Dowdell 2020). Financial statement analysis evaluates all aspects of a business, including projects, budgets, and other transactions, to ensure it is stable and liquid (Dowdell 2020). It is the most efficient way to analyze the fundamental aspects of a company. I used to work for a small restaurant, and financial analysis was essential for the company to succeed. Profitability ratios are the most efficient type of financial statement analysis to use for a restaurant. Profitability ratios analyze a company’s ability to earn a profit and assists in understanding its operating efficiency (Dowdell 2020).

The net profit ratio measures the restaurant’s overall profitability. It is the measure of after-tax profits to net sales (Dowdell 2020). There were a lot of other restaurants in the area, so competition was high. However, total revenue was always more than the total expenses leaving a sizeable net profit margin. The restaurant had few expenses, such as payroll, supplies, utilities, and administrative expenses. Only a few people working there, including myself, but the business was very successful. The restaurant is always busy, so it is crucial to make sure there was enough inventory, especially for specific occasions. Turnover ratios, such as inventory ratio, ensure that inventory is used for its intended purpose and that the restaurant is always fully stocked (Dowdell 2020). There is mostly a high turnover ratio because the restaurant sells food very quickly.

Don't use plagiarized sources. Get Your Custom Essay on
Reply with at least 250 words citation and reference
Just from $13/Page
Order Essay

Dowdell, Thomas D., Klamm, Bonnie K., & Andersen, Margaret L. (2020). Internal Controls and Financial

Statement Analysis. Journal of Theoretical Accounting Research, 15(2), p. 34-57.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GOODESSAY