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14 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What fiancial ratios relate? |
It relates 2 pieces of financial data by dividig one on other |
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Fiancial analyst does what |
Performs checks up on firms financial health |
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Why bother with a ratio? |
Comparison more useful than raw no E.g firm profit 1 m but asset are 200 m that shows not too much profit. More information. |
Comparison |
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Useless ratio? |
Be careful with ratio and their interpretations |
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Type of comparisons? |
Internal external and sources of industry ratios |
2 |
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Internal? |
Past and expected future ratio.of one company. Improv or deteriorate Not one ratio but ratio over time. |
Time |
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External comparison? |
With other companys averages. Gives relatives conditions and perf of firm.deviations from standards. |
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Rules of thumb? |
Diff company diiff ratio no one ratio. |
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Type of ratios? |
2 basic.balance and income called stock and flow. |
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Stock and flow items? Divisins how? |
Stock on top and stock items used as average cuz it is only snapshot |
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Benchmark? |
Comparing company with world class. |
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Five disticnt types of ratios? |
Liquidity Leverage Coverge Activity Profitability And one more marketability. |
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Chart of ratios? |
Pg 138 |
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Liquidity ratios? |
Def? Obligations to meet what? |
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