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There are numerous financial ratios use to analyse different aspects of a company's financial performance Profitability ratios * Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of return. * Gross margin, Gross profit margin or Gross Profit Rate * Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS) * Profit margin, net margin or net profit margin * Return on equity (ROE) * Return on investment (ROI ratio or Du Pont ratio) * Return on assets (ROA) * Efficiency ratio * Net gearing Liquidity ratios Liquidity ratios measure the availability of cash to pay debt. * Current ratio * Acid-test ratio (Quick ratio) * Operation cash flow ratio Activity ratiosActivity ratios measure the effectiveness of the firms use of resources. * Average collection period * DSO Ratio * Average payment period * Asset turnover * Inventory turnover ratio * Receivables Turnover Ratio * Inventory conversion ratio * Inventory conversion period * Receivables conversion period * Payables conversion period Debt ratios (leveraging ratios) Debt ratios measure the firm's ability to repay long-term debt. Debt ratios measure financial leverage. * Debt ratio * Debt to equity ratio * Long-term Debt to equity (LT Debt to Equity) * Times interest-earned ratio * Debt service coverage ratio Market ratios Market ratios measure investor response to owning a company's stock and also the cost of issuing stock. * Earnings per share (EPS) * Payout ratio * Dividend cover (the inverse of Payout Ratio) * P/E ratio * Dividend yield * Cash flow ratio or Price/cash flow ratio * Price to book value ratio (P/B or PBV) * Price/sales ratio * PEG ratio
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Concept of financial analysis?
concept of financial analysis?
Define financial institution and identify the types of financial institution in Nigeria?
Type your answer here Define financial institution and identify the types of financial institution in Nigeria? ...
What are the different types of statistical analysis used in the estimation of production function?
Time series Analysis Cross-section Analysis Engineering Analysis
What is the difference between fundamental and technical stock analysis?
Fundamental analysis refers to analyzing the company's products, its market share, its management, its strategy, its financial and other related information. Technical analysis only looks at the financial charts of the company's stock and not its underlying fundamentals.
What do business simulations achieve?
Business simulations is used for business training and analysis. They are used to achieve: strategic thinking, financial analysis, market analysis, operations, teamwork and leadership.
Who is responsible for periodic financial statement analysis?
accountat for responsible for periodic financial statement analysis?
Why do you say that financial statement analysis is management by exception?
why is financial statement analysis part of business analysis? Please answer this question, I'll need it this answer!
What ratio or other financial statement analysis technique will you adopt for analysis of liquidity of a firm?
What ratio or other financial statement analysis technique will you adopt for this.
How do you make financial statement analysis?
stoling
Hoe does the concept of consistency aid in the analysis of financial statement?
How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied?
Why do creditors use financial statement analysis?
Creditors use finanical statement analysis because it makes it easier for them.
What are Different Types of financial analysis?
Following are two kinds of financial analysis: 1 - Horizontal Analysis 2 - Vertical Analysis
Is a balance sheet the same as a financial statement?
Balance sheet is a type of financial statement. Other types of financial statements could be income statement and statement of cash flow.
What are Three of the most common tools of financial analysis are?
Commonly used tools of financial analysis are: Comparative statements Common size statements Trend analysis Ratio analysis Funds flow analysis Cash flow analysis. According to usage and requirements, comparative financial statements, common size statements, and vertical analysis are some of the most popular financial tools. Unlock the power of cash flow with direct integration with banks to power business insights with Paci.ai
Give some topic relating to summer project in finance?
Financial statement analysis of a company.Loan procedure in a bankStudying the dividend policy of a companyRatio analysis of a company (although it is covered under Financial statement analysis)study of mutual fundscash management in an organization.
what is financial statement analysis and interpretataion?
It is the process of understanding a companys finacial health,profitability and financial position.this includes 1.understanding the company's financial statement and related footnotes analyzing trends in a financial statements over time comparing with competitors' benchmarks identifying the risk and opportunities based on financial analysis
Briefly discuss the primary limitations of ratio analysis as a technique of financial statement analysis?
discuss objective and limitation of time series analysis
