Financial ratios are used by businesses and analysts to determine how a company is financed. Ratios are also used to determine profitability, liquidity, and solvency. Liquidity is the firm's ability to pay off short term debts, and solvency is the ability to pay off long term debts. Commonly...
Financial ratios is a number that give a view of the financial position of the company include balance sheet, income statement, and cash flow statement. Understand the different types of financial ratios.
Comparing mutual fund expense ratios No one can predict future returns on a given fund. “Past performance does not indicate future results,” as the boilerplate disclaimers say. But the fees charged by the mutual fund are known. They come out on a regular basis, regardless of how the fund...
In financial data analysis, the balance sheet, comprehensive income statement, and cash flow statement are usually the most basic and important financial statements, which are called the three major financial statements. Balance Sheet The balance sheet is one of the three major financial statements. ...
What are the Types of Profitability Ratios We have learned so far that the profitability ratios help the companies analyze and monitor the financial health of the business. There are two major categories in which the ratios are divided: Margin Ratios and Return Ratios. ...
Financial Manager:A financial manager is essential to an organization and oversees all financial matters. The person is responsible for ensuring that money is used effectively and that the business is doing well financially.Answer and Explanation: ...
The main items reported in the income statement are: Revenues, which are the amounts earned through the sale of goods and/or the providing of services Expenses, which include the cost of goods sold, SG&A expenses, and interest expense Gains and losses, such as the sale of a noncurrent ass...
What are the most important criteria that a rating firm is using to rate the different financial assets? Explain.Credit Agency:A credit agency acquires and retains an entity's credit history data to prepare its credit reports and ratings. These agencies ...
Financial ratios can be used to assess a company'scapital structureand current risk levels, often in terms of a company's debt level and risk of default or bankruptcy. These ratios are used by investors when they are considering investing in a company. Whether a firm can manage ...
Profitability ratios are a class of financial metrics that are used to assess a business's ability to generate earnings relative to its revenue,operating costs, balance sheet assets, orshareholders' equityover time, using data from a specific point in time. They are among the most popular metric...