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A financial ratio is a relative magnitude of two selected numerical values taken from a Company's Financial Statements. There are many standard ratios that can be used to evaluate the overall financial condition of a company. Financial ratios can be used by managers of a firm or shareholders (both current and potential) or banks or anyone else to gauge the financial strength of the company. They can be used also to compare the strengths and weaknesses of two or more organizations.
For Ex: If I were to buy a banking stock from the Indian stock market, I can compare the financial ratios of a few of the country's leading banks like ICICI, HDFC, SBI etc and then choose the one which I feel has the most impressive financial background and strengths.
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Are there measures other than ratio analysis to measure financial performance?
Here are a few other ways to measure financial performance... IRR = Internal Rate of Return ROI = Return on Investment DCF = Discounted Cash Flow
What financial and non financial measures are important to the business?
CEO performance
A financial ratio that measures the ability to pay current liabilities with liquid assets (cash marketable securities and receivables) is called?
Quick ratio.
What are the limitations of the current ratio?
Ratios can provide clues to the company's performance or financial situation. However, it will not show whether performance is good or bad. Ratio's require additional quantitative information for an informed analysis to be made.
What does controllable profit mean?
Controllable profit measures managerial performance Divisional profit measures divisional performance.
Are there measures other than ratio analysis to measure financial performance?
Here are a few other ways to measure financial performance... IRR = Internal Rate of Return ROI = Return on Investment DCF = Discounted Cash Flow
What financial and non financial measures are important to the business?
CEO performance
Ratio in isolation provide into the financial performance and financial position?
rations in isolation reveal little about financial position and financial performance of business.
A financial ratio that measures the ability to pay current liabilities with liquid assets (cash marketable securities and receivables) is called?
Quick ratio.
What measures are used to assess the performance of not-for-profit organizations?
measures that are relevant are: (1) the ratio of program expenditures to total expenditures; (2) the ratio of administrative overhead to total expenditures; (3) the ratio of fund-raising expenditures to total expenditures
What is the ratio used to find the tangent of a triangle In trigonometry what three common ratios are used to find the measures of the angles and sides of triangles?
financial ratio
Which term refers to a set of quantitative performance measures that human resource managers use to assess their operations?
ratio
What are the limitations of the current ratio?
Ratios can provide clues to the company's performance or financial situation. However, it will not show whether performance is good or bad. Ratio's require additional quantitative information for an informed analysis to be made.
What is balanced mis?
From management point of view the balanced MIS is an approach to performance measurement that combines traditional financial measures with non-financial measures to provide managers with richer and more relevant information about activities they are managing.
what is ratio analysis?
it refers to the assessment of financial statements of a company to make decisions regarding performance and financial position. it covers various areas of a company, like profitability, liquidity, solvency, and market value.
How can explain the various performance measures of disks?
Explain various performance measures of disks.
How is scale factor related to a ratio?
A scale factor is the ratio of corresponding linear measures of two objects.A scale factor is the ratio of corresponding linear measures of two objects.A scale factor is the ratio of corresponding linear measures of two objects.A scale factor is the ratio of corresponding linear measures of two objects.
