chapter 3 fundamental interpretations made from financial statement data outline i ratios and trend analysis a company over time b compared to industry ii return on investment significance method of calculating iii the dupont model an expansion roi calculation margin turnover c rules thumb for iv equity v working capital measures liquidity current ratio acid test d vi illustration profitability pedagogical notes introduces students some concepts that provide framework their understanding accounting as they proceed through chapters 4 10 11 presents comprehensive explanation how use including full compliment well common size many instructors prefer defer coverage roe
