Financial ratios, Financial Accounting

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'.

Posted Date: 4/9/2013 1:59:52 AM | Location : United States

Related Discussions:- Financial ratios, Assignment Help, Ask Question on Financial ratios, Get Answer, Expert's Help, Financial ratios Discussions

Write discussion on Financial ratios
Your posts are moderated
Related Questions
Any non-quantifiable factors you feel might influence the decision to accept the proposal. Net present value methods are merely assessments of factors that we can quantify. The

James Bell plans to stay at the Michaels Motel for one month, and he prepays his room charges. Bell arrives and begins his stay on January 21. To account for Bell's prepayment, at

Alta Velocidad Esperanza de L'Argentina, Sociedad Anónima (AVE), a high-speed railway operator domiciled in Rio Norte, Argentina, is a Foreign Private Issuer as defined by the U.S.

Kevin Murtuagh, manager of an national reservation service for a nationwide chain of luxury hotels, is concerned about productivity of his operation.  Analysis of recent historical

1. Describe the approach Zetar Plc uses to determine goodwill impairment losses. How does this approach differ from US GAAP? 2. Zetar Plc does not report any research and develo

examine the resemblance between Artificial intelligence and neural networks

Q. Draw neat sketches showing recommended formation width for bank and cutting for concrete sleeper track on B.G. as per latest guidelines of the Railway Board for double line. Sid

Calculate the value of each of the following bond Issuer Face Value Coupon Rate Maturity Bid Yield Bid Price

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as tehy prepare and issue financial statements. Let's start by getting an understanding of wh