Reply 8.3

  To state whether a fraternity is fortunate or in pain, there are various factors that can be evaluated. Most of the occasion, the prosperity of a fraternity can be deserved on how greatly wealth they are producing on a per-annum basis. How multifarious customers they entertain, how courteous they attach after a while their markets, and if they are investing and expanding. On the other laborer, if an form is losing customers, entertain aggravate expenses than pay, and are not competing in the market; they can be deemed to be in pain. A financial superintendent can retrospect the form's financial statements of the years antecedent. That way, the superintendent can dissect and see if wealth has increased or decreased. The financial superintendent can retrospect their ratios of availability which takes recital of: come-back on property, come-back on equity, and avail brink. Also, retrospecting convert aggravate ratios such as catalogue convertaggravate and property convertaggravate can afford the financial superintendent a bigger draw of what is going on in the form. McClure, B. (2018, July 25). Financial Ratios to Spot Companies In Financial Distress. Retrieved February 21, 2019, from https://www.investopedia.com/articles/financial-theory/10/spotting-companies-in-financial-distress.asp