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Please suggest some good ratios to evaluate company financial Performance ?

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Question ajoutée par Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC
Date de publication: 2014/12/05

the overall performance could be assessed through these broad ratios of the Company:

1. Assess the profitability through Return on Capital Employed (ROCE) Net profit and asset turnover.

2. Even loss making business could survive if the cash rotation is managed well which could be assessed through Short- term liquidity ratios (current ratio, quick ratio, Working capital)

3. What is the Long term Liquidity of the business? Is the company at a net asset or net liability position? The ratios which help govern these risks are Gearing and leverage ratios of the company (eg. Debt-to equity ratios)

4. Investor's ratio (dividend yield and dividend payout ratios, EPS to help investors compare and target the investments that could earn them the best returns).

Mohammad Nuruddin
par Mohammad Nuruddin , Senior Executive Officer & Operation Manager , Jamuna Bank Limited

1) to judge short term liquidity, calculate quick ratio, current ratio, working capital ratio etc.

2) To judge long term position, debt equity ratio, proprietary ratio, equity multiplier etc

3) to judge profitability, net profit ratio, gross profit ratio, return on capital employed, turnover ratios etc.

4) to judge overall performance, return on Assets (ROA) is needed to be calculated.

 

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