financial ratiosand quality indicators- collegeof charleston(金融ratiosand质量指标——collegeof查尔斯顿).docVIP
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Financial Ratios and Quality Indicators
Monitoring ratios on a regular basis provides insight into how effectively a business is being managed.
Investors/Lenders also evaluate risk by using several sets of ratios; ratios of assets to liabilities, and ratios of lender-investor dollars to owner-investor dollars.
Recognize that ratios are only indicators and that only management can tell the full story about a business. The more adept management is at explaining financial ratios to their Investors/Lenders, the better they will understand your business.
Key Indicators with their definitions,
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