The analysis of a business' health starts with financial statement analysis that includes financial ratio.
Like all financial ratios, a company's debt ratio should be compared with their industry average or other competing firms.
It is a financial ratio that illustrates how well a company's accounts receivables are being managed.
The company must keep certain financial ratios above set levels if it is to continue to have its debt rated triple-A.
Comparing financial ratios is merely one way of conducting financial analysis.
Institutions are rated using a combination of specific financial ratios and examiner qualitative judgments.
Financial analysts use financial ratios to compare the strengths and weaknesses in various companies.
Some have covenants calling for prescribed financial ratios that could send a firm into default.
What indicators (financial ratios) should I focus on to help understand risks about where my business is heading?
However, financial ratios used to gauge the overall condition of a banking concern remain strong at Allied, analysts said.