0
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.
What else can I help you with?
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 is Equity Capital Ratio?
The Equity Capital Ratio is a financial metric that measures the proportion of a company's total equity relative to its total assets. It is calculated by dividing total equity by total assets, expressed as a percentage. A higher ratio indicates a greater reliance on equity funding, which can signify financial stability, while a lower ratio may suggest higher leverage and increased financial risk. This ratio helps investors assess a company's capital structure and financial health.
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
What is a common use of ratios?
Ratios are commonly used in financial analysis to evaluate the performance and health of a business. They help investors and analysts compare financial metrics, such as profitability, liquidity, and leverage, across companies or industries. For example, the debt-to-equity ratio assesses a company's financial leverage, while the current ratio measures its ability to meet short-term obligations. Overall, ratios provide valuable insights into operational efficiency and financial stability.
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 Equity Capital Ratio?
The Equity Capital Ratio is a financial metric that measures the proportion of a company's total equity relative to its total assets. It is calculated by dividing total equity by total assets, expressed as a percentage. A higher ratio indicates a greater reliance on equity funding, which can signify financial stability, while a lower ratio may suggest higher leverage and increased financial risk. This ratio helps investors assess a company's capital structure and financial health.
What is the net effect of cost to income ratio to profitability?
The cost-to-income ratio measures a company's operating efficiency by comparing operating costs to its income. A lower ratio indicates better efficiency and higher profitability, as it means a larger portion of income is retained as profit. Conversely, a higher ratio suggests higher costs relative to income, potentially reducing profitability. Thus, effectively managing this ratio is crucial for enhancing a firm's financial performance.
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.
