Financial Ratios Sample Essay

MANAGERIAL FINANCE:• Managerial finance is concerned with the responsibilities of the fiscal director in the concern house.

• The fiscal director actively manages the fiscal personal businesss of any type of concern. whether private or public. big or little. profit-seeking or not-for-profit.

• They are besides more involved in developing corporate scheme and bettering the firm’s competitory place.FINANCIAL STATEMENTS Analysis:• Ratio analysis involves methods of ciphering and construing fiscal ratios to measure a firm’s fiscal status and public presentation. • It is of involvement to stockholders. creditors.

and the firm’s ain direction.RATIO Analysis:In the undermentioned assignment two companies from the Cement Industries which are registered in the Lahore Stock Exchange ( LSE ) is being taken for the ratio analysis. At first the fiscal ratios of the each company is calculated and is compared with the old twelvemonth of the respected company fiscal ratios informations ( 2008-2009 ) while in 2nd measure the ratios for the twelvemonth 2009 of the both company is compared and is so analyzed that which company is in better place than the other.Average Age of Inventory agencies for how many yearss stock list is unsold and is in ownership of the company. The ratio clearly shows that the figure of yearss for the twelvemonth 2009 is diminishing which means stock list is sold rapidly.Average Age of Account Receivables means how speedy company’s receivables are collected.

The yearss are increased from 2008 to 2009 that means company is acquiring its debts spot late. So there is a diminution in Average Age of Account Receivables.

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