Prompt: Overall purpose of financial ratios – Please write a paper about the purposes of financial...

Prompt: Overall purpose of financial ratios – Please write a paper about the purposes of financial ratios. Include a discussion of their use relative to the economy, the firm’s industry, the firm’s main competitors, and the firm’s past relative ratios.

Requirements: 500 words

Expert Solution

Overall purpose of financial ratios – Please write a paper about the purposes of financial ratios. Include a discussion of their use relative to the economy, the firm’s industry, the firm’s main competitors, and the firm’s past relative ratios.

FINANCIAL RATIOS

Financial ratio are indicators of a firms performance and financial situation. financial ratio is a quantitative method to know about companies performance profit, investment, company's liquidity, operational efficiency,and solvency by comparing information with the firm’s industry, the firm’s main competitors, and the firm’s past relative ratios.

PURPOSES OF FINANCIAL RATIOS

investors and analysts analysis all about company performance financial health by different ratio.
financial ratio is quantitative and fundamental analysis about company.
by using these ratios we can compare a company performance with other companies within an industry or sector.
ratios establish a trend line for company.
ratios highlight company changes.
ratios can reveal both positive and negative information about company.
in external environment ratios shows a complete picture of a company's financial position.
these ratios include the current ratio, return on equity, the debt equity ratio, the dividend payout ratio, the price earning ratio, liquidity ratio, solvency ratio, profitability ratio, efficiency ratio coverage ratio etc.

IMPORTANCE OF RATIO ANALYSIS

All internal and external stakeholders of the firm can analysis the financial statement.
ratios can helps in understanding the profitability of the company.
ratios can show the operational efficiency of the firms.
ratios can helps to know about liquidity of the firms.
its helps in identifying the business risks of the firm.
its helps in identifying the financial risks of the firm.
its helps for planning and future forecasting of the firm.
its helps to compare the performance of the firms.
its helps to knows about economy conditions of the firms.

jeff jeffy answered 4 months ago

Prompt: Optimum portfolio combines investments – Please write a paper about optimizing investments in a portfolio....

Prompt: Optimum portfolio combines investments – Please write a paper about optimizing investments in a portfolio. Global investing needs to be included. Many foreign stock and bond investments provide superior rates of return compared with U.S. securities. They have low correlations with U.S. stock and bond portfolios (Chapter 3). Discuss how the inclusion of foreign securities in a portfolio will help to reduce the overall risk of the portfolio and, in fact, may increase the rate of return to the...

Write a paper on one of the four building blocks of financial ratios on

Write a paper on one of the four building blocks of financial ratios on Profit margin rate, Gross Profit Margin rate, Return on assets ratio (ROA), Return on equity (ROE), and Basic earnings per share? How each of the ratios is calculated and used to analyze financial statements? And also apply these ratios on A recently filed set of financial statements for Walmart Inc. ?

Prompt: Price/cash flow ratio – Please write a paper about the price/cash flow ratio. Why has...

Prompt: Price/cash flow ratio – Please write a paper about the price/cash flow ratio. Why has it become a popular measure of relative value during the recent past? What factors help explain a difference in this ratio for two firms?

Purpose: To enable students in utilising financial ratios for the purpose of evaluating a firm’s financial...

Purpose: To enable students in utilising financial ratios for the purpose of evaluating a firm’s financial performance and financial position as well as in recognising firms facing financial distress and using ratios to make decisions for improvement. Requirement: Financial Statement Analysis A Co. and B Co. are competitors in a particular manufacturing sector. An extract of financial statements for each company is as follows: Use them in a ratio analysis that compares the companys’ financial leverage and profitability. Item...

Discuss financial ratios for the purpose of financial analysis: •mention uses and limitations •choose three ratios...

Discuss financial ratios for the purpose of financial analysis: •mention uses and limitations •choose three ratios from different categories (such as liquidity, asset management, debt management, profitability, etc.)

) Statement of the Assignment: Please prepare a comprehensive list of financial ratios . Write a...

) Statement of the Assignment: Please prepare a comprehensive list of financial ratios . Write a brief explanation below each financial ratio, e.g. what does the financial ratio measures or what the significance of it is. For example: Current Ratio = Current Assist / Current Liabilities Current ratio measures whether our current assets, if liquidated, are sufficient to pay all of our current liabilities. A CR of 1.5, for example, shows that if we were to liquidate all of our...

• Prompt: Federal Reserve Bank, U.S. Banking System, and Fractional Reserve System. Please write a paper...

• Prompt: Federal Reserve Bank, U.S. Banking System, and Fractional Reserve System. Please write a paper that discusses the role of the Federal Reserve Bank in the U.S. banking system. Describe the Fractional Reserve System and the Federal Reserve Bank’s involvement in it. • Requirements: The paper should be at least 1,500 words. Use APA format and provide at least five peer reviewed references

Discuss the purpose and importance of financial ratios and financial analysis. 250 words.

1) Statement of the Assignment: Please prepare a comprehensive list of financial ratios . Write a...

1) Statement of the Assignment: Please prepare a comprehensive list of financial ratios . Write a brief explanation below each financial ratio, e.g. what does the financial ratio measures or what the significance of it is. For example: Current Ratio = Current Assist / Current Liabilities Current ratio measures whether our current assets, if liquidated, are sufficient to pay all of our current liabilities. A CR of 1.5, for example, shows that if we were to liquidate all of our...

Define the major financial indicators and ratios used to assess financial standing, and for the purpose...

Define the major financial indicators and ratios used to assess financial standing, and for the purpose of financial analysis of a corporation. State the significance of each.

Question