Financial ratios
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Words: 2636
Pages: 10
(approximately 235 words/page)
Pages: 10
(approximately 235 words/page)
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Introduction
Every organisation aims to maintain its market dominant position as well as to maximise its profitability through a series of activities, so as to remain competitive within framework of the market mechanism and to advance functions. It is necessary for managers to be familiar with the overall performance of the enterprise, in an effort to develop an effective strategic plan for companies' prosperity and progress. Thus it is essential to identify the capabilities of
showed first 75 words of 2636 total
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showed first 75 words of 2636 total
showed last 75 words of 2636 total
earlier ratios can only be meaningful measurement of a company's performance if there are compared to other ratios. However , problems with the comparison of two companies ratios can also occur due to the differences such as financial year and financial policies. 'Ratio help to highlight the financial strengths and weaknesses of a business, but they cannot, by themselves explain why certain strengths and weaknesses exist, or why certain changes have occurred'. (Atrill and McLaney, 2004, p179)
earlier ratios can only be meaningful measurement of a company's performance if there are compared to other ratios. However , problems with the comparison of two companies ratios can also occur due to the differences such as financial year and financial policies. 'Ratio help to highlight the financial strengths and weaknesses of a business, but they cannot, by themselves explain why certain strengths and weaknesses exist, or why certain changes have occurred'. (Atrill and McLaney, 2004, p179)