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Q: What financial ratio is the best measure of the operating effectiveness of a firm's management?
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Cost of inventory should be classified as?

expense


What does they annual expense ratio mean?

A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management.


What is administrative audit?

What is the Administrative Audit Is the process of checking analytical regulator continuously aspects of financial and administrative activities, and evaluation of goals and plans, policies and procedures, organizational structure and methods of measurement and evaluation of performance and methods of financial control and management and the results achieved in the light of the potential physical and human resources, and measure the reflection effects of non-financial aspects of the company's activity and the relevant authorities using methods updated , in order to assess management performance for the company, and the rationalization of management by directing their eyes and their attention to increasing citizen or excessive profitability by providing recommendations, including weaknesses and inefficiencies in the activities of inspection and audit, and to clarify the causes and methods of treatment.


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


Example of working capital?

Working capital is a measure of a company's efficiency and its financial health. A measure of a companies efficiency is an example of working capital.

Related questions

Which financial ratio is the best measure of the operating effectiveness of a firms management?

current ratio


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What are the metrics that can be used to measure the efficiency or effectiveness of Incident Management?

The following metrics can be used to measure the efficiency/effectiveness of Incident Management: • The percentage of Incidents resolved within SLA • The average cost of an Incident • The average cost of a Major Incident • The percentage of Incidents that are Major


What has the author Eliot D Chapple written?

Eliot D. Chapple has written: 'The measure of management designing organizations for human effectiveness'


What the relationship between financial management and management?

Financial management and management are closely interconnected and interdependent within an organization. Financial management is a specialized function that focuses on the planning, organizing, controlling, and directing of financial resources to achieve the goals and objectives of an organization. On the other hand, management encompasses a broader set of activities that involve planning, organizing, coordinating, leading, and controlling resources (including financial resources) to achieve overall organizational objectives. Here are some key aspects of the relationship between financial management and management: Decision-Making: Financial management provides crucial financial information and analysis that supports managerial decision-making. It helps managers assess the financial implications of various options and make informed choices that align with the organization's goals and financial sustainability. Resource Allocation: Financial management plays a significant role in resource allocation within an organization. It involves determining how financial resources should be allocated across different departments, projects, or initiatives to optimize their utilization and achieve desired outcomes. This aligns with the broader management function of allocating resources effectively and efficiently. Performance Monitoring: Financial management provides tools and techniques to monitor and measure the financial performance of an organization. It involves analyzing financial statements, conducting financial ratio analysis, and preparing financial reports to assess the organization's financial health. This information aids management in evaluating the overall performance and making necessary adjustments to ensure financial stability and growth. Budgeting and Planning: Financial management involves the development and implementation of budgets, which are crucial management tools for planning, controlling, and monitoring organizational activities. Effective financial planning and budgeting help management set financial targets, allocate resources, and evaluate performance against established financial goals. Risk Management: Financial management plays a vital role in identifying, assessing, and managing financial risks within an organization. It involves evaluating potential risks related to investments, capital structure, liquidity, and financial markets. Management utilizes financial information to make risk-informed decisions and implement strategies to mitigate financial risks. Communication and Reporting: Financial management provides financial information to management, enabling effective communication and reporting. Financial reports, such as income statements, balance sheets, and cash flow statements, provide insights into the financial results and financial position of the organization. Management utilizes this information to communicate financial performance to stakeholders and make informed strategic decisions.


What is the definition of tenant farming?

Tenant farming is an agricultural production system in which landowners contribute their land and often a measure of operating capital and management


How can you measure the effectiveness of human resource strategy?

There are different ways to measure the effectiveness of a human resource strategy. The best way is by looking at the achievement of the objectives of the organization in relation to the strategy.


How can you measure the effectiveness of an oatmeal soap as anti-acne within days or even months?

You can measure the effectiveness of an oatmeal soap as anti-acne based on the reduction of acne on your face


What is operating exposure?

Operating exposure is the degree to which a company's operating income (earnings before interest and taxes) is affected by changes in foreign exchange rates. It measures the impact of currency fluctuations on a company's financial performance due to changes in sales, costs, or both in different currencies. Operating exposure is a measure of how vulnerable a company is to fluctuations in exchange rates impacting its bottom line.


What is a measurement that identifies the degree to which goals and objectives are obtained is a measure of?

organizational effectiveness


Objectives of comparative financial statement analysis?

Comparative financial statements provide analysts with significant information about trends and relationships over two or more years.Liquidity ratios. Measure the ability of the enterprise to pay its debts as they mature.Activity (or turnover) ratios. Measure how effectively the enterprise is using its assets.Profitability ratios. Measure management's success in generating returns for those who provide capital to the enterprise.Coverage ratios. Measure the protection for long-term creditors and investors.


How does monetary policy measure each impact of management supply?

how does monetary policy measure each impact of management