Spectacular Financial Ratios Examples
Financial information Cash 120000 Accounts receivable 260000 Inventory.
Financial ratios examples. Knowing that a share price is 213 doesnt tell you much. Financial ratios are usually split into seven main categories. But knowing that the companys price-to-earnings ratio PE is 85 provides you with more context.
In 2011 the debt ratio is 278. A shareholder ratio describes the companys financial condition in terms of amounts per share of stock. There are many different financial ratios held within 5 main categories.
Total LiabilitiesTotal Assets 10743373 318 - This means that 318 of the firms assets are financed with debt. The reason we do this is because these ratios can give you a lot more insight into how the company is performing than by looking at those financial statement. The result allows you to measure the relationship between numbers.
Financial ratios are relationships determined from a companys financial information and used for comparison purposes. Its difficult to know whether those numbers are good bad or so. There exist many accounting ratios used throughout the industry divided into subcategories like profitability ratios debt ratios and liquidity ratios among others.
For example and a turnover analysis indicates average collection time of 41 days then accounts receivable collections are lagging. On any public companys financial statements youll find a lot of very large numbers. If the terms were.
Extract of sample Financial Ratio of Warratah Bank. The paper Financial Ratio of Warratah Bank is a finance and accounting case study. Using a ratio means taking one number from a companys financial statements and dividing it by another.