The Role of Financial Ratios
Table of content
Chapter 1. Notion and types of ratios. 4
1.1 Liquidity ratios. 5
1.2 Financial leverage ratios 7
1.3 Funds management ratios 9
1.4 Profitability ratios 12
Chapter 2. Use of financial ratios. 15
2.1Use and Limitations of Financ...
To what extent might the cash flow statement help to overcome the traditional limitations of financial statement analysis in evaluating the past performance and predicting the future successes or failures of business organisations?
Accounting is the major means of organizing and summarizing in...
Student's name Registration Number Date for submission of Assignment Is the cover page in the correct format as indicated in the “guidelines to “writing assignments”? Have I done a complete spell-check of the Assignment? Have I done a complete word count for the Assignment? D...
Financial Ratios Tutorial
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Table Of Contents:
1) Liquidity Measurement...
THE EFFECT OF FINANCIAL RATIOS ON SHARE PRICE ON LISTED COMPANY AGROINDUSTRY LQ45 INDEX IN INDONESIA STOCK EXCHANGE
Endawati, Dr. Izzati Amperaningrum, SE. Graduate Program, Accounting Information System, 2009 Gunadarma University http://www.gunadarma.ac.id Keywords : Stock ABSTRACT : Financial rat...
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 obligatio...
@Financial Ratios Used In BSG-Online
Profitability Ratios (as reported on pages 2 and 5 of the Footwear
Industry Report) •
Earnings per share (EPS) is defined as net income divided by the number of shares of stock issued to stockholders. Higher EPS values indicate the company is earning more ne...
Financial ratios are calculated from one or more pieces of information from a company's financial statements. For example, the "gross margin" is the gross profit from operations divided by the total sales or revenues of a company, expressed in percentage terms. In isolation, a financial ratio is a u...
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 w...
In identifying four types of financial ratios it is important to keep in mind that ratios are only meaningful when compared to other ratios set by standards of a particular entity. There are five categories of financial ratios; liquidity helps a company analyze their ability to meet short-term obli...
Investors and other external users of financial information will often need to measure the performance and financial health of an organization. This is done in order to evaluate the success of the business, determine any weaknesses of the business, compare current and past performanc...
The company that I have selected for Financial Ratio analysis is GOOGLE.
The Ratios that I am going to analyze are grouped under four main headings: 1) Profitability
Ratio 2) Liquidity Ratio 3) Debt Ratio 4) Market Ratio
1. Profitability Ratio - Profitability ratios measure the firm's use of its...
3 March 2008
Financial Ratios: Week 9 Written Assignment
Three financial ratios used in accounting are liquidity, profitability, and leverage. Financial ratios are important to accounting because it is "a tool that hel...
Before engaging in discussions about varying types of financial ratios, it is most important to have a working definition of a financial ratio and likewise, of a financial statement. According to the Financial Dictionary on Free Dictionary dot com (2007), a financial ratio “is the result of divid...
The financial ratios are:
Liquidity Ratio- The firms ability to satisfy the short term obligations. (Gitman, 2007)
Activity ratio- That measure the speed with which various accounts are converted into sales or cash, inflows or outflows. (Gitman, 2007)
Debt ratio- That measures the proportion of...
Analyzing Your Financial Ratios
Any successful business owner is constantly evaluating the performance of his or her company, comparing it with the company's historical figures, with its industry competitors, and even with successful businesses from other industries. To complete a thorou...
Financial ratio analysis is a technique for trying to help interpret financial accounts and to determine the intrinsic value of a security by careful examination of key value drivers such as risk, growth, and competitive position. Various ratios can be calculated from the...
Running Head: Defining Ratios
Defining Financial Ratios
University of Phoenix
There are many ways an investor or a business owner can identify how well or how poorly a company is performing. Each quarter publicly traded comp...
Financial Ratio Analysis
It is difficult to infer organizational perfor mance from one or two simple numbers. Nevertheless, in practice a num ber of different ratios are often calculated in strategic planning endeavors and, taken as a whole and with some caution, these ratios do provide some info...