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What are other ratios used in financial reporting

What are other ratios used in financial reporting

The dividend yield of relationship tells investors how much income they receive on their investments in shares in a company. It is calculated by dividing the annual cash dividend per share by the current price of the stock market. This can be compared with the rate of interest on debt instruments of high quality pay interest, such as Treasury bills and Treasury bills, which are the safest.

Book value per share is calculated by dividing the total of the shareholders divided by the total number of shares which are very constructive. While the most important value market of a stock, the book value per share EPS is the measure of the value recorded of the assets of the company less its liabilities, net assets of the backup copy of the action taken. It is possible that the market value of a stock is smaller than the book value per share.

Return on equity ratio (re) tells how a bus8iness compared to the carrying value of its equity profits. This ratio is useful for private companies, which have no way to determine the current value of the equity. ROE is also calculated for the companies, but it plays a secondary role other reports. ROE is calculated by dividing net income by equity.

The current ratio is a measure of a company in the short term solvency, in other words its ability to payment in the near future as a result obligations. This ratio is a crude indicator of whether if cash more money to collect accounts receivable and inventory to sell enough to repay the obligations listed in the following period will come due. It is calculated by dividing the assets by liabilities. Companies must comply with a current of minimum 2: 1 ratio, which means that the assets should be twice the current obligations.

What are other ratios used in financial reporting - Internet Business Online News


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