Pehr Weisengraf could not interpret the financial ratios of his business after he was presented with a document of the calculated ratios by the banker following a failure to secure a loan for his business from the bank. The ratios are calculated to predict and ascertain the performance of the business by credit issuing institutions. The comparison of the ratios from the previous and current year did not match the required industry average that could have consequently determined what amount of loan could be awarded to his business. In this regard, it is essential that Weisengraf learns what the ratios mean and ...
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