Financial ratios allow for comparisons between companies, between industries and also between a single company and its industry average or peer group average.
Fuel efficiency is a goal of the country as a whole, and President Bush has committed a considerable amount of money towards this research.
This ratio gives stockholders a clear picture of the short-term financial abilities. However, this ratio is still crucial to evaluate, because fluctuations can be a sign of fraud or irregular financials. Return of investments ROI ratio measures the combined effects of profit margins and total asset turnover.
Employee pricing promotions will be a big consideration in this area for this year. According to Ford's numbers, this has been an area of gradual improvement over the past few years, after a drastic drop from to Sort By: Search The lower the profit per dollar of assets, the more asset-intensive the business is.
The industry average falls quickly behind this theory with less than a percentage point difference for the past five years.
Capital structure ratios include debt to equity and debt to asset ratios, and liquidity ratios include coverage ratios and solvency ratios. In Infront Analytics, financial ratios are categorized according to the financial aspect of the business that the ratio measures: - Growth ratios measure the company's rate of growth and assess the potential for future growth.