Financial ratios, Financial Accounting

Assignment Help:

Financial ratios have been categorized in a variety of manners. You may determine the subsequent broad bases having been utilized in current literature:

 Primacy Criterion: This distinguishes a measure that could be considered helpful for all kinds and sizes of business enterprises, from many other measures that are not so universal in usage. The first one has been termed as the Primary Ratio that is: the Return on Investment or the ROI and the other category termed as Secondary measures comprises all other ratios. Such measures will fundamentally vary among firms and they will choose only such of those measures as are relevant for their requirements. The British Institute of Management utilizes this classification for inter-firm comparisons.

Ratios tagged to requirements of interest groups: The main interest groups identified for this reason are:

A) Management

B) Owners

C) Lenders                                                         

Such classification assumes that 'management group' is various from 'owner group'.


Related Discussions:- Financial ratios

Illustration regarding profit that head office can claim, Illustration rega...

Illustration regarding profit that head office can claim E Ltd sets up a branch in Nyeri on 1 July 2001. Goods are sent to branch at an invoice price which is 10% above cost. S

Financial management, Discuss the applicability of the operating cycle in p...

Discuss the applicability of the operating cycle in poultry (consider broilers)

Effect of additional debt finance on financial position, Q. Effect of Addit...

Q. Effect of Additional Debt Finance on Financial Position? Debt finance of $3·2m would raise gearing on a book value basis from 54% to 203% ((1167 + 3200)/2150) which is five

How much of the existing cash balance, As of January 1, 2011, the partnersh...

As of January 1, 2011, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash 80,000 non cash

Define the term relevance - accounting information, Define the term Relevan...

Define the term Relevance - accounting information Accounting information should have the ability to influence decisions. Except this characteristic is present, there is ac

Acquisition during the financial period-group accounts, Acquisition during ...

Acquisition during the financial period The holding company may acquire the subsidiary company partway through the financial period such that as at the balance sheet date, the

605, I am working on the comprehensive probelm and I can not figure out the...

I am working on the comprehensive probelm and I can not figure out the trial balance. Where am I going wrong?

Calculate the present value, Compute the present value of Rs. 1000 receivab...

Compute the present value of Rs. 1000 receivable 6 years thus if the discount rate is 10 percent. Solution: The present value is computed as follows: PV kn = FV n . PVIF k,n

Extent of tests of control, Extent of Tests of Control -Every year AUDITOR ...

Extent of Tests of Control -Every year AUDITOR should obtain sufficient evidence about whether company's internal control over financial reporting, including controls for all inter

Financial institution, Financial Institution - Organization engaged in any ...

Financial Institution - Organization engaged in any of the many aspects of finance involving thrift institutions, commercial banks, securities brokers, investment banks and dealers

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd