What information might you use, besides its financial statements, when analyzing an organization's financial health?

What information might you use, besides its financial statements, when analyzing an organization's financial health? What is a company's "z-score," and what does it tell you?

Expert Solution

The information that might we use, besides its financial statements, when analyzing an organization's financial health are as follows

1. The Inventory Level it is excessive or insufficient

2. Cash Collection policy or schedules.

3. Budget Analysis

4. Sales Activities of the Business

5. Companys future Plan or Past activities

6. Operating Efficiency

7. Working Capital of business.

A Z Score is just a numerical representation of the values relationship with the mean in a group values A Z Score in a company will help or tell to find out the likelihood that a company will go bankrupt.A comopany Z score will be calculated with the assets , liabilities , net income etc. which are to be found from the financial statements of the company.

jeff jeffy answered 2 years ago

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