Analyze Profitability Continued 5. The preceding analytical procedures have been selected because they will prove to be the most beneficial for you, the small-business owner and operator. There are other, more specific techniques that are used by people and agencies with special interests in certain components of financial statements. Creditors, for example, are concerned with the ability of a company to pay its current obligations and, therefore, seek information about the relationship of current assets to current liabilities. Stockholders are concerned with dividends.
Management is concerned with the activity of the merchandise inventory.
All parties, it seems, are vitally interested in profitability.