Prelude to Comprehensive Analysis Building Blocks of Analysis Analysis emphasizes six areas of inquiry--with varying degrees of Importance Short-term liquidity--Ability to meet short-term obligations Cash flow and forecasting--Future availability and disposition of cash Capital structure and solvency--Ability to generate future revenues and meet long-term obligations Return on invested capital--Ability to provide financial rewards sufficient to attract and retain financing Asset turnover--Asset intensity in generating revenues to reach a sufficient profitability level Operating performance and profitability--Success at maximizing revenues and minimizing expenses from operating activities over the long runBuilding Blocks of Analysis Prelude to Comprehensive Analysis Analysis emphasizes six areas of inquiry—with varying degrees of importance • Short-term liquidity--Ability to meet short-term obligations. • Cash flow and forecasting--Future availability and disposition of cash. • Capital structure and solvency--Ability to generate future revenues and meet long-term obligations. • Return on invested capital--Ability to provide financial rewards sufficient to attract and retain financing. • Asset turnover--Asset intensity in generating revenues to reach a sufficient profitability level. • Operating performance and profitability--Success at maximizing revenues and minimizing expenses from operating activities over the long run