Liability Structure


A common-size statement or vertical analysis of assets is then presented for the firm and the average global benchmarks. For ratios where there are large deviations between the firm and the benchmarks, graphics are provided (sometimes referred to as a financial “gap” analysis). Then the distribution of ratios is presented in the form of ranks and percentiles.

Liability: A company's legal debts or obligations that arise during the course of business operations Liabilities are settled over time through the transfer of economic benefits including money, goods or services. Liabilities are a vital aspect of a company's operations because they are used to finance operations and pay for large expansions. They can also make transactions between businesses more efficient. For example, the outstanding money that a company owes to its suppliers would be considered a liability.

Posted in Liability.