A BLUEPRINT OF RATIO ANALYSIS AS INFORMATION BASIS OF CORPORATION FINANCIAL MANAGEMENT
Journal Title: Problems of Management in the 21st Century - Year 2014, Vol 9, Issue 2
Abstract
Ratio analysis, due to its simplicity, has, for a long time, been one of the most frequently used methods of fnancial analysis. However, the question is how its results are a good basis for assessment of fnancial condition of a company by the external users of fnancial reports. If one takes into account numerous limitations, one can rather say that ratio analysis is a rough approximation of fnancial situation. What are the limitations, can they be overcome and in what way, can they, at least, be reduced, and to what extent the user has to take a reserved attitude when making business decisions on the basis of ratio analysis? The last but not the least, we should accept the fact that by insisting on fnancial analysis other aspects of the analyses are, in practice frequently marginalized, thus neglecting the fact that actually they themselves in the most direct manner point to the causes of potential disorders in business activities of a company.
Authors and Affiliations
Maja Andrijasevic, Vesna Pasic
Keywords
Related Articles
- EP ID EP32177
- DOI -
- Views 358
- Downloads 0
ChalleNgeS of the ProjeCt PlaNNINg MethodS IN the 21St CeNtury
There are a lot of project planning (like Gantt chart (Gant, 1910)) and network-based scheduling methods (like CPM, PDM, GERT (see i.e. Kelley-Walker, 1959, Pritsker 1966)), they were developed for handling traditional...
USAGE OF SELECTED RESOURCES FOR INCLUSIVE EDUCATION IN MAINSTREAM PRIMARY SCHOOLS: ISSUES AND CHALLENGES FROM A KENYAN PERSPECTIVE
This study assessed the effectiveness of the use of selected teaching/learning resources in the implementation of Inclusive Education (I.E) for Special Needs Education (SNE) learners in mainstream primary schools. Focus...
THE COLOURS OF BUSINESS MANAGEMENT
Business has many colours and faces. Undoubtedly, we are at an inflection point in discussion on modern business management models ((Kana & Mynarzova, 2014, Kuraś & Kuraś, 2015), but maybe teal paradigm shows the directi...
TEACHERS’ PERCEPTIONS OF THE CONSEQUENCES OF INTERPERSONAL CONFLICT: A CASE STUDY IN THREE PRIMARY SCHOOLS
The purpose of this qualitative intrinsic interpretive case study, which formed part of a larger Master in Education Study, is to report on the perceptions of teachers in three primary schools regarding the consequence...
THE IMPACT OF INCENTIVES ON PRODUCTIVITY OF FIRMS IN GHANA: A CASE STUDY OF GHANA AIRPORT COMPANY LIMITED
The study investigates the impact of incentives on the productivity of frms in Ghana. The study had the following objectives: to establish the relationship between incentives and higher productivity among workers, to f...