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
What performance measures r placed on working capital management?
Performance measures for working capital management typically include the current ratio, quick ratio, inventory turnover ratio, and days sales outstanding (DSO). The current ratio assesses a company's ability to cover short-term liabilities with short-term assets, while the quick ratio provides a more stringent view by excluding inventory. Inventory turnover measures how efficiently inventory is managed, and DSO evaluates how effectively a company collects receivables. Together, these metrics help assess liquidity, operational efficiency, and overall financial health.
A financial ratio that measures the ability to pay current liabilities with liquid assets (cash marketable securities and receivables) is called?
Quick ratio.
What is called a financial ration that measures the ability to pay current liabilities with liquid assets?
The financial ratio that measures the ability to pay current liabilities with liquid assets is called the "current ratio." It is calculated by dividing a company’s current assets by its current liabilities. A higher current ratio indicates better liquidity and financial health, suggesting that the company can easily meet its short-term obligations. A ratio below 1 may indicate potential liquidity problems.
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.
What performance measures r placed on working capital management?
Performance measures for working capital management typically include the current ratio, quick ratio, inventory turnover ratio, and days sales outstanding (DSO). The current ratio assesses a company's ability to cover short-term liabilities with short-term assets, while the quick ratio provides a more stringent view by excluding inventory. Inventory turnover measures how efficiently inventory is managed, and DSO evaluates how effectively a company collects receivables. Together, these metrics help assess liquidity, operational efficiency, and overall financial health.
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.
What is called a financial ration that measures the ability to pay current liabilities with liquid assets?
The financial ratio that measures the ability to pay current liabilities with liquid assets is called the "current ratio." It is calculated by dividing a company’s current assets by its current liabilities. A higher current ratio indicates better liquidity and financial health, suggesting that the company can easily meet its short-term obligations. A ratio below 1 may indicate potential liquidity problems.
Which term refers to a set of quantitative performance measures that human resource managers use to assess their operations?
ratio
What is a financial ratio that measures the ability to pay current liabilities with liquid assets?
The financial ratio that measures the ability to pay current liabilities with liquid assets is the current ratio. It is calculated by dividing a company's current assets by its current liabilities. A higher current ratio indicates better liquidity and a stronger ability to meet short-term obligations. Generally, a ratio above 1 suggests that the company has more current assets than current liabilities.
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.
