significance of ratio analysis:- The ratio analysis is one of the most powerful tools of the financial analysis. this is used to a device to analyze and interpret the financial health of enterprise. Ratio analysis is stands for the process of determining and presenting the relationship of items and groups of items in the financial statements. It is an important tool of the financial analysis. The main following are the points of importance of ratio analysis: a) Managerial uses of ratio analysis:- Helps
not realize how often we use such information to look at and utilize in our regular day to day existences. Statistics primarily is used for research purposes, and aids to making decisions based of the data that is collected. There is significant importance
singled out 16 firms that normally financial analysis would consider problematic. There are 3 classes characteristic variables that were constructed: conventional ratios, 4-year trend measures and fund statement variables. Funds statement variables were too inconstant for significant analysis and the trend measures’ contributions to the strength of the discriminant model were insignificant. Thus, the analysis concentrated on a group of 50 financial ratios which were later changed accordingly to enhance
A large number of factors, each having a different importance, influence working capital needs of firms. The importance of factors also changes for a firm over time. Following are the factors which generally influence the working capital requirements of firms. Nature of business: Size of business/ scale of operation: Production policy
Work In Progress, Finished Goods, Spares, Consumables, Spares, scrap. Inventory represents those items, which are either stocked for sale, or they are in process of manufacturing or they are in the form of materials, which are yet to be utilized. IMPORTANCE OF INVENTORY: Inventories constitute the largest component of current assets .A stock out creates an unpleasant situation for the organization. If a firm carries excessive inventory the added carrying cost may represent difference between profit
Before proceeding to the equipment design and the economic analysis, it is necessary to have a look at the process control. The main objective of process control is to produce a product with a certain quality and flow rate. Different operation conditions will result in another product quality and flow rate. Therefore process control is important. In addition, process control is essential for safe operation. Various types of controlling loops are applied to control all the existing valves in the proposed
This ratio is also known as interest coverage ratio. This ratio is obtained by dividing profit before interest and tax by fixed interest charges. Lenders are most interested in knowwing the debt service coverage because they will find it profitable to lend to the firm only if it sees that the firm has sufficient funds available to repay the principal amount and the interest
assets and core capital requirement should also be raised from 4.5% to 5% in the recent year (BRPD Circular No. 10 of BB). In the recent years SBL has maintained the sufficient CAR as guided by the Bangladesh Bank; though it failed to keep prerequisite ratio in some years. This entire paper is based on the theoretical
any business. Without efficient working capital management company cannot attain its objectives and not possible to maintain financial soundness. So in this perspective present study is undertaken to study the working capital management through ratio analysis at CHLOROPLAST. The term working capital refers to the management of current assets. It is the part of total capital used for carrying out the routine or regular business operation. In simple words it is the amount of funds used for
expressed as a ratio (a benefit-to-cost ratio), a net benefit, or a net cost. A clinical decision maker would choose the program or treatment alternative with the highest net benefit or the greatest benefit-to-cost ratio. 12 As opposed to the cost-benefit analysis, the cost-effectiveness analysis is a way of summarizing the health benefits and resources used by competing healthcare programs so that policymakers can choose among them. The results of this analysis are also expressed as a ratio—either as