Ratios are used for many purposes; performance measurement is one such application. However, not all performance measures are expressed as a ratio. Do some research on the Internet to learn about operating leverage, ROI, EVA, DOL and another performance measure of your choice. You will note that there are variations in the computations of a particular measurement. Consistency in application is the key.
Use information from Facebook to complete the assignment.
https://investor.fb.com/releasedetail.cfm?ReleaseID=802760
https://investor.fb.com/secfiling.cfm?filingID=1326801-13-31
https://wallstcheatsheet.com/stocks/analysts-facebook-expected-to-generate-operating-leverage-and-3-other-research-notes-to-browse.html/?a=viewall
Required:
Reflect on the advantages and disadvantages of these performance measures. Choose your preferred measure and explain your rationale.
Provide brief explanations
Provide an Excel spreadsheet representing your findings