Present a definition for the different classifications of ratios and explain what they measure during a financial analysis which include: -Liquidity Ratios -Activity Ratios -Financing Ratios -Market Value Ratio -Profitability Ratio Also what roles would the different departments ( what do they specialize in) contribute to during the financial analysis breakdown: -Finance Manager -Sales Manager -Marketing Manager -HR Manager -Legal department manager
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Present a definition for the different classifications of ratios and explain what they measure during a financial analysis which include:
-Liquidity Ratios
-Activity Ratios
-Financing Ratios
-Market Value Ratio
-Profitability Ratio
Also what roles would the different departments ( what do they specialize in) contribute to during the financial analysis breakdown:
-Finance Manager
-Sales Manager
-Marketing Manager
-HR Manager
-Legal department manager
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