For The Financial Manager Which Is The Most Valuable Information Liquidty Ratio Debt Ratio Prfitability Ratio And Activity Ratio Essays and Term Papers

  • Financial Ratios for Managers and Investors

    The ratios considered useful by upper management will be different than what an investor consider useful. Senior management will be concerned with the ratio like return on total assets because they want to know how the company is fairing overall and whether they will be able to meet the debt holders...

      325 Words | 1 Pages   Dividend, Leverage (finance), Equity (finance), Rate of return

  • The Sharpe Ratio and the Information Ratio

    “The Sharpe Ratio and the Information Ratio”, by Deborah Kidd is about the original risk-adjusted performance measure and they are Sharpe ratio and the Information Ratio. William Sharpe designed the first performance metric to insolate excess return per unit of total risk taken. The Sharpe ratio shows whether...

      645 Words | 2 Pages   Sharpe ratio, Modern portfolio theory, Information ratio, Standard deviation

  • Liquidity Ratios and Activity Ratios

    2.0 FINANCIAL RATIOS 2 Liquidity Ratios Liquidity ratios measure a business' capacity to pay its debts as they come due. It also measures the cooperative’s ability to meet short-term obligations. Liquidity refers to the solvency of the firm’s overall financial position – the ease...

      2112 Words | 6 Pages   Just in time (business), Inventory, Revenue, Inventory turnover

  • Debt Ratio

    performing, one of those tools is the debt ratio calculation. The debt ratio shows the proportion of assets financed with debt, liabilities. It is calculated by the companies total liabilities divided by its total assets and is used as a percentage. Total assets and total debts can be found on the balance sheet...

      385 Words | 1 Pages   Debt, Balance sheet

  • financial ratio

    Da225@gre.ac.uk Work Telephone number: 07424525695 / 07850263416 Placement Tutor: DERYN GRAHAM Company Name: MARKS AND SPENCER Supervisor/Line Manager: JULIANA IRORO * Compulsory response Work Experience*: Set out your main duties undertaken during the month(s) and critically appraise your own...

      1304 Words | 5 Pages   Supply chain

  • Financial Ratio

    Jerry’s Financial Performance Year 1993 Year 1994 Change Leverage Ratio: Long-term debt ratio = Debt / (Long-term debt + Equity) $18,002,076/($18,002,076+ $74,262,415) = 0.195113806 $32,418,565/($32,418,565+ $72,502,019) = 0.308981934 Increased Long-term debt equity ratio: Long-term debt/ Equity...

      565 Words | 2 Pages   Leverage (finance), Debt-to-equity ratio, Equity (finance), Margin (finance)

  • Financial ratios

    FINANCIAL STATEMENTS Accrual-based approach – revenues are recorded at the point of sale and costs when they are incurred, not necessarily when a firm receives or pays out cash Cash flow approach – used by financial professionals to focus attention on current and prospective inflows and outflows of...

      1066 Words | 6 Pages   Financial ratio, Market liquidity, Leverage (finance), Rate of return

  • financial ratio

    is considered as a capital expenditure. It does not represent repair expense which is deductible expenditure under S 33(1)(c) of the Income Tax Act 1967 due to the new chimney replaced was an improvement for the company which is consider an enhancement of the asset value. According to the tax case Conn...

      708 Words | 2 Pages   Expense, Tax deduction, Taxation in the United States, Income tax in the United States

  • Financial Ratios

    FINANCIAL RATIOS LIQUIDITY RATIOS Current Ratio: = current assets / current liabilities ▪ The higher the ratio, the greater the "cushion" between current obligations and a firm's ability to meet them. ▪ Use: An indication of a company's ability to meet short-term debt obligations; the...

      4389 Words | 18 Pages   Operating margin, Return on equity, Times interest earned, Return on investment

  • Financial Ratios

    Liquidity ratios are the measure of how company pays its short term obligations and to meet the needs of the cash. The simplest ratio is the current ratio. This ratio expresses the relationship between current assets and current liabilities. The comparison of the ratio shows that for both 2009 and...

      809 Words | 3 Pages   Market liquidity, Equity (finance), Quick ratio

  • Financial Ratios

    Financial Ratios The creditable performance calculation for the Valley of the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio, long-term solvency ratio, contribution ratio, and general and management/expense ratio (Goetsch & Davis...

      536 Words | 2 Pages  

  • Financial Ratios

    TABLE OF CONTENTS Types of Financial Ratios Liquidity Ratio Quick Ratio Interpretation of Quick Ratio Efficiency Ratio Asset Turnover Ratio Interpretation of Asset Turnover Ratio Profitability Ratio * Net Profit margin * Return on net worth EPS(Earning Per Share) Interpretation of EPS ...

      2254 Words | 9 Pages   Free cash flow, Debt-to-equity ratio, Security (finance), Stock

  • Financial ratios

    Business Ratio Why Look Ratios ? Enables us to uncover relationships between financial statement items/Helps us identify, evaluate, interpret changes in financial performance over a period of time/needed for future decisision-making. Ratio Analysis: Profitability, Efficiency, Liquidity, Stability...

      388 Words | 2 Pages   Equity (finance), Finance, Working capital, Return on equity

  • Financial Ratio

    profitability focus on measuring the adequacy of income by comparing it to other items reported on the financial statements. 1) Return on Equity: One of the most important profitability ratios is return on equity (ROE). ROE is the amount of net income returned as a percentage of shareholders equity...

      1799 Words | 8 Pages   Fixed asset, Revenue, Corporate finance, Debt-to-equity ratio

  • Financial Ratio

    buildings and equipment where there will be large amounts of depreciation expense. The remainder of our explanation of financial ratios and financial statement analysis will use information from the following income statement: Example Corporation Income Statement For the year ended December 31...

      3640 Words | 19 Pages   Return on investment, Revenue, Equity (finance), Leverage (finance)

  • Financial Ratios

    Profitability Ratios: 1. Profit Margin = (PAT/Sales)*100 * The profit margin for 2012 is 2.41% and for 2011 is 2.03%. * In 2011-12, the profit after tax increased by 47.70% to 1027.69 Lakhs compared to 695.79 Lakhs in 2010-11. 2. Asset Turnover = Sales/Average Total Assets * In...

      339 Words | 2 Pages   Return on equity, Equity (finance), Dividend, Share (finance)

  • Financial Ratios

    Part A After-TAX Cost Debt O’Grandy Apparel Company can calculate the after tax debt cost using YTM (CP + (FV-Nd /n) / FV +Nd /2) *2. Cp is (0.12/2) * 1000= 60 Semi-annually Fv is 1000 Nd is 995 – (0.025* 1000) = 970 N is 20*2 because it is semi-annually then you have to use Kdt= Kd+ (i-T) .The...

      3365 Words | 9 Pages   Rate of return, Cost of capital, Capital structure, Dividend policy

  • financial ratios

    FINANCIAL RATIOS Gross Profit to Sales (Gross Profit Ratio): profitability ratio that shows the relationship between gross profit and total net sales revenue. Gross margin/Net sales The gross margin is not an exact estimate of the company's pricing strategy but it does give a good indication of...

      1144 Words | 4 Pages   Current liability, Return on equity, Debt-to-equity ratio, Working capital

  • Financial Ratios

    Financial Ratios Financial Management Current Ratio Current Ratio = Current Assets   $104,296.00 0.75 Current Liabilities      $139,017.00 Long-Term Solvency Ratio Long-Term Solvency Rate = Total...

      67 Words | 1 Pages  

  • Financial Ratios

    Uses of financial ratios One of the most widely used forms of financial analysis is the use of ratios. They can provide data that is useful for investment decisions. They can also help internal management of an organization gain an awareness of their company's strengths and weaknesses. And, if we...

      533 Words | 2 Pages   Debt, Stock, Financial statement analysis, Financial ratio