Archive for the ‘financial ratios’ Category:
Financial Ratios in Project Finance Model Ver. 3.0
Financial ratios are mathematical comparisons of financial statement (P&L or Income & Expense, Cash Flow, and Balance Sheet Statements) accounts or categories.
These relationships between income, expense, cash flow and balance sheet accounts help investors, creditors, and internal company management understand how well a business is performing and areas of needing improvement.
Financial ratios are the most common tools used in analyzing a business’ financial standing. Ratios are easy to understand and simple to compute.
They can also be used to compare different companies in different industries. Since a ratio is simply a mathematically comparison based on proportions, big and small companies can be use ratios to compare their financial information. More »