Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Uses and Application of Ratios
Ratios are required in the following ways via managers in different firms.
1. Evaluating the efficiency of assets employment to generate sales revenue that is turnover ratio.
2. Evaluating the capability of the firm to meet its short term financial obligation like and when they fall due as liquidity ratios.
3. To carry out industrial analysis that is compare the firm's performance along with the average industrial performance of the firm by that of individual competitors in the similar industry.
4. For cross sectional analysis that is comparing the performance of the firm by that of individual competitors in the similar industry.
5. For trend/time series analysis such is evaluate the firm over time performance.
6. To establish the extent that the assets of the firm has been financed via fixed charge capital such is use of gearing ratio
7. To predict the bankruptcy of the firm such is utilizing of selected ratios to determine the overall ratio generally called Z-score. The Z-score when compared along with a pre-determined acceptable a Z-score will shows the probability of the bankruptcy of the firm in future.
Example of Quantity Discounts Consider illustration one and suppose that a quantity discount of 5 percent is given whether a minimum 200 units is ordered. Required Fin
Analysis of the bond issue (a) Show that the price of the bond is equal to that of a portfolio which contains i) a long position in an option-free but otherwise identical co
Food and Beverages Rooms, Restaurants and Other Services Other Income Total $ $ $ Sale
Asset Based Valuation - Example K and K Company Limited is planning to absorb three other companies so as to realize its sales records of Sh.500, 000 per annum. Its accountan
Advantage of Joint Stock Companies The company can own assets and incur liabilities on its own accord. Perpetual existence as or going to relate that allows the compan
Yard Stick Required in Ratio Analysis 1. Past performance of the company The company's previous performance past ratio is needed to gauge or measure the company's present
Explain Mechanics of security trading in Stock Exchange Introduction: An investor should have some knowledge of how the securities markets operate. Marketing of old or new se
Question: Company XYZ currently operates a General Insurance company and would like to start selling life insurance products. The intended market is composed of both financial
What are depository institutions? Depository institutions: intermediaries along with an important proportion of their funds derived through customer deposits as consists of: co
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd