
	Where results make sense

Topic: Ratio analysis

Related Topics

golden ratio

aspect ratio image

Sex ratios

compression ratio

power to weight ratio

Likelihood ratio test

gear ratio

International normalized ratio

aspect ratio wing

odds ratio

cross ratio

In the News (Fri 17 Feb 12)

EXECUTIVE POWER

Iran

ANALYSIS

Pakistan

Family compact

	4. Financial Ratio Analysis
		Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry.
		Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them.
		The main question this ratio addresses is: "Does your business have enough current assets to meet the payment schedule of its current debts with a margin of safety for possible losses in current assets, such as inventory shrinkage or collectable accounts?" A generally acceptable current ratio is 2 to 1.
	www.zeromillion.com /business/financial/financial-ratio.html (1196 words)

	Ratio Analysis (Site not responding. Last check: 2007-10-26)
		Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas.
		Because Ratio Analysis is based upon Accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical Cost Accounting and inflation.
		Therefore, Ratio Analysis should only be used as a first step in financial analysis, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further.
	www2.hpu.edu /mlane/BusinessFinanceOnline/RA/RatioAnalysis.html (265 words)

	Ratio Analysis by ECI.
		A financial ratio is a relationship that indicates something about an industry's activities, such as the ratio between the industry's current assets and current liabilities, or between its accounts receivable and its annual sales.
		The observation that the value of a particular ratio is too high, too low, or just right, depends on the perspective of the analyst performing the ratio analysis.
		Third, a financial ratio is meaningful only when it is compared with some standard, such as another industry trend or a ratio trend for the specific industry being analyzed in the ratio analysis.
	www.eci-equity.com /ratio_analysis.htm (529 words)

	Ratio Analysis Measures Health
		This ratio indicates a nonprofit’s relative liquidity and is a basic indicator of financial strength, since it measures the availability of cash and other liquid assets to meet the organization’s financial obligations as they come due.
		This ratio measures financial performance by answering the question, “Did the organization live within its means during the year?” The Net Income Ratio is the extent to which the organization’s total operations have resulted in a surplus or a deficit.
		Ratio analysis can be a useful tool for helping boards and staffs understand financial statements, compare financial status and performance to previous years and to other similar organizations, and thus assess financial viability.
	www.nfconline.org /main/info/notables/note96/96_4_a.htm (979 words)

	Ratio analysis
		You need to set up ratio components and ratio formulas before you can apply a ratio analysis to your financial statements to gauge the success, failure, and performance of your company.
		Using the ratio analysis, you can spot unfavourable trends in your business and also compare its performance with the average performance of similar businesses in the same industry.
		You can perform ratio analysis for a single account (you won't be able to do it for consolidated accounts).
	www.atxinc.com /help/accounting/Ratio_analysis.htm (359 words)

	Ratio Analysis (Site not responding. Last check: 2007-10-26)
		Financial ratio analysis is a process whereby the analyst or manager determines the degree of financial health represented by the firm's financial statements.
		Ratios that measure profitability usually consist of a profit element and one that represents the amount of funds invested in whatever aspect of the firm is of interest to the analyst.
		Generally the order or preference given to this ratio is arranged on a continuum such that a low negative ratio is characterized as a weak debt/worth position and a high positive ratio value is perceived as a strong debt/worth position.
	www.uni.edu /dss/courses/150175/studyhints/ratioanalysis.html (1720 words)

	Salmi & Martikainen (1994), Review of Financial Ratio Analysis
		It is observed that it is typical of financial ratio analysis research that there are several unexpectedly distinct lines with research traditions of their own.
		In traditional financial ratio analysis both the X and the Y are based on financial statements.
		After a principal component factor analysis of 39 ratios of the Pinches, Eubank, Mingo and Caruthers (1975) they conclude that there is a high instability in always selecting the financial ratio with the highest absolute factor loading as the representative financial ratio for the observed factors.
	lipas.uwasa.fi /~ts/ejre/ejre.html (11219 words)

	Session 2: Ratio Analysis Technique
		Such a standard may be either the ratio which represents the typical performance of the trade or industry, or the ratio which represents the target set by management as desirable for the business.
		The ratios indicate the degree to which the activities of a firm are supported by creditors’ funds as opposed to owners.
		The ratio indicates that there is increase in the ROI from 8.38% in 2000 to 8.95% in 2002.
	cbdd.wsu.edu /kewlcontent/cdoutput/TR505r/page38.htm (3009 words)

	Financial Ratio Analysis
		Comparative ratio analysis helps you identify and quantify your company's strengths and weaknesses, evaluate its financial position, and understand the risks you may be taking.
		Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage.
		Ratio analysis is primarily used to compare a company's financial figures over a period of time, a method sometimes called trend analysis.
	www.va-interactive.com /cit/tools/ratio_analysis.html (3039 words)

	Key Financial Ratios
		Ratio analysis is the study of relationships among and between various financial statement accounts.
		The current ratio is one of the most commonly cited of all financial ratios.
		This is the so-called coverage ratio and measures the ability of the firm to meet its fixed interest payments.
	www.thecorys.com /babs/key_financial_ratios.htm (1432 words)

	Ratio Analysis (Site not responding. Last check: 2007-10-26)
		Unlike in a review, ratio analysis is not conducted, and the CPA firm will include a disclaimer stating it did not examine any of the data, relying on your...
		Hazard ratio analysis of this patient population revealed a fairly broad demographic distribution of patients across gender, disease stage, ECOG status, tumor...
		Ratio analysis is comparing one number to another and interpreting that number.
	www.mongabay.com /igapo/technology/Ratio_Analysis.html (673 words)

	Financial Statement Ratio Analysis
		Financial statement ratio analysis looks at relationships inside the industry/firm, an industry/firm of one size can be directly compared to a second industry/firm (or a collection of industries/firms) which may be larger or smaller or even in a different business.
		Financial statement ratio analysis is a method of comparison not dependent on the size of either industry/firm.
		However, ratios on their own, without year-to-year or other industry/firm comparative ratios, are of little use in judging the health or future of the industry/firm being analyzed.
	www.ventureline.com /SamplePrivateCompanyVsIndustry.asp (176 words)

	Financial Ratio Analysis
		Financial ratio analysis is the calculation and comparison of ratios which are derived from the information in a company's financial statements.
		It is imperative to note the importance of the proper context for ratio analysis.
		Although financial ratio analysis is well-developed and the actual ratios are well-known, practicing financial analysts often develop their own measures for particular industries and even individual companies.
	www.finpipe.com /equity/finratan.htm (577 words)

	Welcome to BizLand.com
		But there is a third step in the evaluation process -- using ratio analysis with those financial statements to interpret the financial condition and performance of your company.
		Ratio analysis is a prerequisite procedure when bankers and other lenders evaluate your loan application.
		There are hundreds of ratio formulas that can be applied to a comprehensive set of financial statements, but for the scope of this column we will limit ourselves to 4 different formulas in 3 different categories.
	www.bizland.com /articles/windhaus2.html (282 words)

	studyfinance.com - Overview: Ratio Analysis
		Ratios are simply one number divided by another; as such they may or not be meaningful.
		In finance, ratios are usually two financial statement items that may be related to one another and may provide the prudent user a good deal of information.
		A good strategy is to compare the ratios to some sort of benchmark, such as industry averages or to what a company has done in the past, or both.
	www.studyfinance.com /lessons/ratioanal (375 words)

	Financial Statement Ratio Analysis
		The ratios that are used could change depending upon the industry the business is in, the size of the business, the accounting method that is used by the business and the amount of the credit desired and how healthy the company is.
		This ratio is generally considered to be a more accurate assessment of a company's health than the current ratio as it reduces the risk of relying on a ratio which may include slow moving or redundant stock.
		A ratio of less than 0.7 to 1 could mean danger, but in some industries the norm is 0.3 to 1.
	www.creditman.co.uk /training/ratios.html (741 words)

	Ratio Analysis (Site not responding. Last check: 2007-10-26)
		This ratio is a measure of the ability of a firm to meet its short-term obligations.
		The higher the ratio, the more efficient the inventory management of the firm, but too high a ratio could indicate a level of inventory that is too low with resulting frequent stockouts and the potential of losing customers.
		Ratio analysis will assist the manager in making these vital decisions to perform a balancing act that is an art rather than a science.
	webpages.marshall.edu /~bolling/ratios97.html (3819 words)

	Financial Ratio Analysis Software
		Financial ratios are one of the simplest and most powerful methods of analyzing the performance and viability of a business.
		Perform financial ratio analyses on financial statements or add benchmarks to your business analysis with our industry averages and statistics.
		In minutes, BizBench can perform a complete financial statement and ratio analysis and generate a 45+ page report for your clients, comparing their strengths and weaknesses to others in their industries.
	www.mbaware.com /finratansof.html (183 words)

	Financial Ratio Analysis - Index
		Ratio Analysis 3: Working Capital Management 1: Liquidity
		Ratio Analysis 4: Working Capital Management 1 continued: Asset usage
		These ratio analysis materials were prepared for Biz/ed by Duncan Williamson: Duncan is a teacher, a freelance author and business consultant who prepares teaching/learning materials for accountants and students of accounting.
	www.bized.ac.uk /compfact/ratios/index.htm (147 words)

	Gold/Oil Ratio Extremes
		The gold/oil ratio is the perfect tool to help precisely quantify the degree to which gold leads or lags crude oil.
		One of the most fascinating attributes of long-term ratio analysis is the elegance with which it integrates two foundational market principles.
		Whether oil soars or slumps, a gold/oil ratio mean reversion is going to push gold higher, probably a whole heck of a lot higher, in the years ahead.
	www.zealllc.com /2004/goldoil4.htm (3591 words)

	Financial Analysis
		Ratio analysis is a diagnostic tool that helps to identify problem areas and opportunities within a company.
		Ratio #7 is useful for valuing companies such as internet services or cable services that rely primarily on members to generate income.
		Ratios may not be strictly comparable for different firms due to a variety of factors such as different accounting practices, different fiscal year.
	faculty.philau.edu /lermackh/financial_analysis.htm (7014 words)

	Comparative Ratio Analysis (Site not responding. Last check: 2007-10-26)
		Lending institutions use the RMA ratios as one measure of a business that is applying for a loan.
		Guide to the Example: The sheet "Ratios" is protected - actual data can only be entered in selected cells in column C. RMA data is entered in column E. If you want to change the sheet, use menu option Tool, Protection, UnProtect sheet to unlock all cells.
		Ratio formulas use range names so that you can easily determine source of data.
	www.lacher.com /examples/lacher45.htm (220 words)

	Finance and Accounts 2: Ratio Analysis - Activity
		Ratio analysis is the key way in which this is carried out.
		Traditionally, ratio analysis has been an Achilles heel for students; a seemingly mental block occurs when asked to manipulate financial data.
		There are opportunities to take the analysis further in the 'advanced' section and you can also use the Financial Ratios database(http://www.bized.ac.uk/cgi-bin/ratios/ratiodata.pl) to select different businesses to provide further practice and hone your skills.
	bized.ac.uk /educators/16-19/business/accounting/activity/finance2.htm (488 words)

	Financial Ratio Analysis, a Business Resource from American Express
		Ratio analysis is an excellent method for determining the overall financial condition of your small business.
		Ratios are also very useful for making comparisons between your business and other businesses in your industry.
		If you are new to using financial ratios, review this article to learn ratio analysis basics and gain access to resources for finding ratio baselines.
	www133.americanexpress.com /osbn/tool/ratios/financialratio.asp (411 words)

	Essay: Financial Ratio Analysis. - Coursework.Info
		Financial Ratio Analysis 1.1 Introduction As part of the system of financial control in an organisation, it will be necessary to have ways of measuring the progress of the enterprise, so that managers know how well the company concerned is doing.
		The usual way of interpreting accounting reports is to calculate and then to analyse certain ratios (Ratio Analysis).
		The key to obtain meaningful information from ration analysis is comparison (that is, comparing ratios over time within the same business to establish whether the business is improving or declining, and comparing ratios between similar businesses to see
	coursework.info /I_B_/Economics/Financial_Ratio_Analysis_L35280.html (212 words)

	Ratio Analysis Formula (Site not responding. Last check: 2007-10-26)
		These Financial Ratios should be calculated using the data from the most recent balance sheet available.
		For these Turnover Ratios, use the most recent income statment data, and the average balance sheet item over the time period represented by that income statement.
		The key to interpreting these ratios is to watch the trend over time for the same company, as well as to compare them to the most succesful competitors in the same industry.
	www.geocities.com /~ssic/ratio.html (112 words)

	Ratio Analysis - Financial Statement Analysis \| Credit Guru
		Liquidity Ratios are ratios that come off the the Balance Sheet and hence measure the liquidity of the company as on a particular day i.e the day that the Balance Sheet was prepared.
		These ratios are important in measuring the ability of a company to meet both its short term and long term obligations.
		The ratio is regarded as an acid test of liquidity for a company.
	www.creditguru.com /ratios/ratiopg1.htm (470 words)

	Financial Analysis / Industry Analysis / Accounting Ratios
		Whether you are a novice or a recognized professional, your MBA is your financial analysis partner.
		From accounting ratio analysis to locating venture capitalists, angel investors or pre-analyzed investment opportunities, our mission is to assist you in achieving your monetary goals; minimize your inherent risk of loss, while increasing your potential for success.
		This is your professional resource for financial statement analysis and in-depth industry ratios analysis.
	www.ventureline.com (267 words)

	Finance Tools: Ratio Analysis
		A ratio analysis transforms accounting numbers into meaningful ratios that highlight strengths and weaknesses of a business.
		From a whole day of computations by hand, you should be able to obtain 5 years of analysis within an hour, with understandable explanations, once familiar with the spreadsheet.
		It draws a more realistic picture of a company's ability to repay current obligations than the current ratio as it excludes inventories that may hardly be liquidated at their book value.
	www.businesstools.org /analysis/analysis.html (2303 words)

Try your search on: Qwika (all wikis)