Introduction to Financial Ratio Classifications
Ratios can be collected into categories, with each category relating to a specific aspect of financial performance or position.
The following broad categories give a helpful basis for describing the nature of the financial ratios to be dealt with. There are five of them are described as follow:
Businesses usually exist with the main purpose of creating wealth for their owners. Profitability ratios give insights relating to the degree of success in attaining this aim. They express the profit made (or figures bearing on profit, like sales revenue or overheads) in relation to other main figures in the financial statements or to a number of business resource.
Ratios may be employed to measure the efficiency with which specific resources have been employed within the business. These ratios are also considered as activity ratios.
It is very important to the survival of a business that there are enough liquid resources available to meet maturing obligations (i.e. amounts owing that must be paid in the near future). A number of liquidity ratios examine the relationship among liquid resources held and amounts that is due for payment in the near future.
This is the relationship among the contribution to financing the business made through the holders of the business and the amount contributed through others, in the form of loans. The level of gearing has a significant influence on the degree of risk related with a business, as we shall see. So, gearing is something that managers must refer when making financing decisions. Gearing ratios tend to emphasize the extent to which the business uses borrowings.
Specific ratios are referred with assessing the returns and performance of shares in a specific business from the perspective of shareholders who are not included with the management of the business.
The analyst has to be clear who the target users are and why they require the information. Various users of financial information are likely to have dissimilar information needs that will in turn determine the ratios that they find helpful. For instance, shareholders are expected to be specifically interested in their returns in relation to the level of risk related with their investment. So, Profitability, investment and gearing ratios will be of specific interest. Long-term lenders are related with the long-term viability of the business and, to assist them to assess this, the profitability and gearing ratios of the business are also expected to be of specific interest. Short-term lenders, like suppliers of goods and services on credit, might be interested in the capability of the business to repay the amounts owing in the short term. The result, the liquidity ratios should be of interest.
Latest technology based Financial Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Financial Ratio Classifications homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Financial Ratio Classifications, project ideas and tutorials. We provide email based Financial Ratio Classifications homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Financial Ratio Classifications. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Financial Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the financial accounting assignments, which may help you to solve your complex issues of Financial Ratio Classifications. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
the chemical industry-an overview tutorial all along with the key concepts of complex characteristics of the chemical industry, what does the chemical industry produce and economic aspects
theory and lecture notes of load power and internal resistance all along with the key concepts of theory of load power, maximum power transfer and internal resistance. tutorsglobe offers homework help, assignment help and tutor’s assistance on theory of load power and internal resistance.
Natural gas treatment processes tutorial all along with the key concepts of Acid Gas Treatment, Physical Absorption, Physical Adsorption, Chemical Absorption, Natural Gas Liquid, Liquefied Natural Gas, Properties of Natural Gas and Gas Hydrates
Schrodinger Equation tutorial all along with the key concepts of Derivation of the schrodinger equation, Interpretation of the equation and its solutions
Theory and lecture notes of MRS and Special utility functions all along with the key concepts of Marginal Rate of Substitution, Special Utility Functions, Cobb-Douglas Utility Function, Quasi-Linear Utility Function, Budget Constraint. Tutorsglobe offers homework help, assignment help and tutor’s assistance on MRS and Special utility functions.
Hire PhD certified tutors and secure top-notch grades with best Quantitative Techniques and Methods Assignment Help.
theory of elasticity and key concepts of elasticity of demand, income elasticity, cross section, own-price elasticity, cross-price elasticity, dependent variable, arc approach, advertising elasticity, independent variable, point approaches, short run, multiple regressions, elastic, long run, time series and inelastic
tutorsglobe.com respiratory quotient assignment help-homework help by online respiration tutors
Nuclear Structure tutorial all along with the key concepts of nuclides with same Isotopes, nuclides with same Isobars, nuclides with same Isotones, uncertainty in momentum of electron, Excess mass and packing fraction, Nucleus, Nuclear Binding Energy and Separation Energy
Within uniform costing methods, numbers of the units of dissimilar sizes and peculiarities are participated. On such type of background, the adoption of a uniform cost plan presupposes the presence of the uniform cost manual.
Fundamentals of Ecology tutorial all along with the key concepts of Ecological Community, Composition and Diversity, Habitat and Ecological Niche, Interactions, Ecosystem, Abiotic components and Biotic Components
Reactions of Alkynes tutorial all along with the key concepts of Electrophilic addition, Halogenation, Hydration, Hydration, Reduction, Oxidation
mechanism properties of polymers tutorial all along with the key concepts of stress-strain properties, typical materials-mechanical properties, action on polymer
Physiology of behavior tutorial all along with the key concepts of Approaches to Animal Behavior, Causes of behavior, Timing of behavior, Examples of Innate behavior, Anthropomorphism, Maturation and Instinct Learning Interactions
tutorsglobe.com shapes and types of winding wires assignment help-homework help by online winding wire tutors
1946820
Questions Asked
3689
Tutors
1496076
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!