Financial Ratio Analysis
Financial ratio analysis is useful when you want to compare the financial performance of one or more businesses.
financial ratios
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FINANCIAL RATIO - The result of dividing one financial statement item by another. Ratios help analysts ...
FINANCIAL RATIO ANALYSIS - is: a. an easy and valuable way to interpret and understand the numbers foun...
The main article for this category is Financial ratios.
Pages in category "Financial ratios"
The following 117 pages are in this category, out of 117 total. This list may not reflect recent changes (learn more).
Financial Ratios
An overview of financial ratios, including liquidity ratios, asset turnover ratios, financial leverage ratios, profitability ratios, and dividend policy ratios.
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Financial Ratios
Ratios constructed using the various numbers found on Financial Statements. They are used to estimate the financial strengths and weaknesses of a company.
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Financial ratio analysis - Is a method used by interested parties such as investors, creditors, and management to evaluate the past, current, and projected conditions and performance of the firm.
Key Financial Ratios
Different readers of accounts will look at different ratios. Typical readers of accounts will include:
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Financial ratio
Debt-to-capital ratio
References
^ Peterson, Pamela (1999). Analysis of Financial Statements. New York: Wiley. p. 92. ISBN 1883249597.
^ Welch, Ivo. A Bad Measure of Leverage: The Financial-Debt-To-Asset Ratio. SSRN.
Financial ratios that show how well the company can deal with its debt obligations.
Debt/Equity Ratio
A ratio that shows whether a company's borrowing is excessive. The higher the ratio, the higher the financial risk.
A financial ratio commonly used in the analysis of oil companies, representing the after-tax operating cash flow, excluding financial expenses after taxes.
Debt-adjusted cash flow (DACF) is calculated as follows: ...
A financial ratio relating the value of a business to its earnings before interest, taxes, depreciation and amortization expenses.
What It Means ...
A financial ratio which is similar to the current ratio, but more stringent. It is defined as: ...
"A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets."
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By itself, any financial ratio is a rather useless piece of information.
Financial ratios used to indicate the extent debt is being used by a company as a source of capital. Examples include, Debt to Equity, debt to total assets, and fixed charge coverage. Debt ratios are typically important to lenders.
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PREG Financial ratio defined as stock price divided by sales over earnings growth. Often used in the valuation of Internet stocks. Related: PSSG.
Comparative credit analysis A method of analysis in which a firm is compared to others that have a desired target debt rating in order to infer an appropriate financial ratio target.
PRICE/BOOK RATIO A financial ratio that relates a company's stock (share price) to its total assets less any intangible assets (goodwill, patents) minus current and long-term liabilities.
com features far more than financial ratios and stock quotes as it aims to provide some education and explanation as to why things are the way they are. If you have a particular interest, such as real estate, TheStreet.
com offers free business statistics and financial ratios, by type of entity (sole proprietor, corporation, partnership), by industry (retail, beverage store, construction, etc.) and by amount of gross receipts.
Return on equity (ROE), is a financial ratio that measures the return generated on stockholders'/shareholders' equity, ...
A financial ratio indicating the degree of profitability of a business. ROI is of particular importance to owners because it can be used to compare with other investments.
Analytical Tools in Financial Modeling - Financial Ratios
Basic Accounting Principles
Financial Valuation Concepts - The Internal Rate of Return (IRR)
Financial Management Excel Templates (All Inclusive 150 Workbook Pack) ...
The quick ratio (also known as acid test) is a financial ratio similar to the current ratio, but more stringent. It is defined as: current assets minus stocks, divided by current liabilities.
Buyers also evaluate financial benchmarks, such as days sales outstanding (DSO), accounts receivable aging, financial ratios (liquidity, leverage, and growth), and net earnings.
Specifically, fundamental analysis emphasizes forecasts of company's earnings and revenue growth rates, valuation ratios like price to earnings, and financial ratios like profit margins.
Ratio Analysis The use of financial ratios for assessing the financial ratios for assessing the financial performance and financial position of a company by means of various ratios that relate to the LIQUIDITY, turnover, profitability, etc.
This financial ratio is used to measure a businesses' reliance on external finance and whether it has enough working capital to cover its day to day operations.
For example, when a banker compares a business' profitability to standard financial ratios for that type of business, the process is sometimes referred to as "benchmarking.
The same applies to almost all financial ratios, with the additional complication that a vertically integrated business may operate in industries that differ in what one would expect.
Businesses may also choose to integrate horizontally.
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A Better Way to Value REITs Financial Ratios with Some Bang How to Prepare Your Portfolio for the Worst What's So Good About Goodwill?
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Municipal Financial Ratio Analysis
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You also have to look for the fundamentals of the stock in terms of growth, creditability of the management, financial ratios and hidden assets on the company's balance sheet.
Formerly known as Early Warning System or Early Warning Tests, financial ratio and performance criteria designed by the National Association of Insurance Commissioners to identify insurance companies, ...
Covenants are pre-established financial ratios that ALSTOM must maintain compliance with to respect financing agreements with its lenders.
Deferred Tax ...
Covenant
Promise in the trust indenture or other formal debt agreement that certain acts or financial ratios will be performed or maintained. Alternatively, the promise to refrain from certain actions such as disposal of assets.
A predictive model created by Edward Altman in the 1960's. This model combines 5 different financial ratios to determine the likelihood of bankruptcy amongst companies.
ROI - (Return on Investment) Net Profit divided by Net Worth. A financial ratio indicating the degree of profitability.
Delisted Security
Elimination of a corporation's security from an exchange because the security no longer meets specific financial ratios, sales levels, or other qualifications.
See: Listing Requirements ...
Company-specific risk Related: Unsystematic risk Comparative credit analysis A method of analysis in which a firm is compared to others that have a desired target debt rating in order to infer an appropriate financial ratio target.
Comparing a firm to others that have a desired target debt rating in order to deduce an appropriate financial ratio target.
Comparative Statements ...
Financing that does not add debt on a balance sheet and thus does not affect borrowing capacity as it would be determined by financial ratios.
Offer
The price at which a seller will sell a security.
A statistical process that links the probability of default to a specified set of financial ratios.
Dishonor
A refusal to pay.
Disinflation ...
P/S Ratio (Price/Sales Ratio) A financial ratio that compares stock price with sales per share (or market value with total revenue).
Pricing Grid: When a borrower agrees to pay a margin the level of which varies by reference to specific financial ratios (e.g., leverage) or external credit ratings, the transaction is said to contain a pricing grid or matrix.
A method of analysis in which a firm is compared to others that have a desired target debt rating in order to infer an appropriate financial ratio target.
Comparison universe ...
It is much easier to react to an unexpected change in financial position when information is current and accurate than when it is several months old. Here are the key financial ratios that the management of every small business and their CFO should ...
Financial Calculator
Calculator which has numerous built-in financial functions including cash flow analysis, mortgage amortization, present and future yield, yield to maturity and many other business statistics and financial ratios.
Comparative credit analysis
Comparing a firm to others that have a desired target debt rating in order to deduce an appropriate financial ratio target.
The lender also has the right of termination if the borrowers does not meet all its obligations included in the accompanying documentation, as information flows to the bank as well as financial ratio constraints.
Discriminate analysis A statistical process that links the probability of default to a specified set of financial ratios. Dishonor A refusal to pay. Disinflation A decrease in the rate of inflation.
 See also: Expense, Banks, Reorg, Financial leverage, Capital structure
  
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