Analyze your potential employer

Abstract

This paper demonstrates how basic financial analysis skills students learn in their introductory courses in financial accounting, managerial accounting, and finance can be used by graduating business majors to make informed employment decisions. Eleven types of basic analysis are used to identify areas of concern in a potential employer’s financial health. Analysis using financial ratios, financial statement line items, and information in audit reports are provided with specific real life examples. This paper can serve as a tool that educators can use to give to their graduating business majors as they begin their job search.

Keywords:

• Accounting
• auditor reports
• bankruptcy
• employment opportunities
• financial statement analysis
• occupational economics

Disclosure statement

The authors report there are no competing interests to declare.