Analyzing Profitability Focus of Profitability Analysis Profitability analysis is key part of financial statement analysis All financial statements are pertinent to profitability analysis Emphasis of profitability analysis is on the income statement
Liquidity and Working Capital Basics Company Liquidity refers to the ability to meet short- term obligations Liquidity is the ability to convert assets into cash or to obtain cash Short term is the longer of one-year or the company operating cycle
