Financial Ratios Research Papers - Academia.edu (original) (raw)

Purpose-This paper examines the financial ratios that may have a significant effect on the efficiency in Malaysian listed companies. Nine financial ratios measure seven variables which are firm visibility, tangibility, working capital,... more

Purpose-This paper examines the financial ratios that may have a significant effect on the efficiency in Malaysian listed companies. Nine financial ratios measure seven variables which are firm visibility, tangibility, working capital, leverage, liquidity, productivity and profitability. Design/methodology/approach-Data are collected from 108 public listed companies in Malaysia. The data extracted from companies' annual reports for three years 2012-2014. STATA software analysis is used to examine these relationships. Findings-The results show each of tangibility and liquidity have negative relationships with efficiency ratio. In against of that, profitability, working capital and productively positively link to efficiency. Leverage which is measured by two ratios-Debt ratio and Debt equity ratioshows mix results. Debt ratio shows a positive but not significant relationship with efficiency ratio and Debt equity ratio shows a negative significant relationship with efficiency ratio. Practical implications-The results benefit companies, investors, economists and governments regulators in Malaysia-to understand the efficiency determinants, so help to make the right decision to enhance the efficiency level in companies which leads to enhance the amount of investments which in turn, enhance the country's economy in general. Originality/value-This study differs than previous studies number of aspects: first the study covers a three years' period between 2012 and 2014, this period presents the movement of Malaysian current into depreciation with more than 45 percent of its value. Second, in the Malaysia context, this study examines new variables such as firm visibility, tangibility, and productivity. Third, the results of this study will help managers, shareholders, investors, regulators and other parties to make right decisions that will enhance the level of firm efficiency which enhances the investments and the economy of Malaysia.

Given the important part that the Coca-Cola Company has in the non-alcoholic beverages industry, this paper has been conducted to examine the performance of this company at the financial level between 2017 and 2020. This study has been... more

Given the important part that the Coca-Cola Company has in the non-alcoholic beverages industry, this paper has been conducted to examine the performance of this company at the financial level between 2017 and 2020. This study has been carried through using the Financial Ratios Analysis method including Liquidity Ratios, Profitability Ratios and Solvency Ratios. This paper has also examined the limitations of the ratios analysis conducted. This research is based on quantifiable and non-quantifiable information published on different sources.

A b s t r a c t The research investigates the performance of Islamic banking in Global economic recession period in Compare with Conventional Banking from the period of September 2008b to December 2009 in Pakistan. Data were collected... more

A b s t r a c t The research investigates the performance of Islamic banking in Global economic recession period in Compare with Conventional Banking from the period of September 2008b to December 2009 in Pakistan. Data were collected from four leading Islamic banks and Four Conventional banks from the period of Sept.2008 to December 2009 operated in Pakistan.

Computer visualizations are all around us. In this paper we describe a design process in which we explore the development of a new visualization to aid managerial decision making. The ultimate goal of our design effort is to develop a... more

Computer visualizations are all around us. In this paper we describe a design process in which we explore the development of a new visualization to aid managerial decision making. The ultimate goal of our design effort is to develop a visualization that allows for presenting most of the critical financial ratios used to describe a firm's activity on a single computer display and dynamically. In doing so, we hope to enable managers to develop holistic and intuitive appreciations of such matters as how a business changes ...

Fundamental investment analysis of a public corporation's prospects requires quantitative and qualitative analysis to determine the investment value of its shares. Integrative spreadsheets offer students significant help in a semester... more

Fundamental investment analysis of a public corporation's prospects requires quantitative and qualitative analysis to determine the investment value of its shares. Integrative spreadsheets offer students significant help in a semester project in determining the intrinsic investment value of a corporation of their choice. This article illustrates a systematic approach for teaching fundamental investment analysis. Students analyze the investment potential of

This paper provides preliminary evidence of the impact on financial ratios caused by the transition to International Financial Reporting Standards (IFRS) in Canada. The main features of IFRS are explained in the context of a shift from... more

This paper provides preliminary evidence of the impact on financial ratios caused by the transition to International Financial Reporting Standards (IFRS) in Canada. The main features of IFRS are explained in the context of a shift from Canadian Generally Accepted Accounting Principles (GAAP) while the main differences between the two sets of rules are underscored – heavier reliance of IFRS on fair value accounting and comprehensive income, and the use of the entity theory for consolidation. The effects of IFRS on financial ratios in the areas of liquidity, leverage, coverage and profitability are discussed and verified using a sample cohort of early adopters in Canada. The preliminary evidence reveals significantly higher volatility to most of the ratios under IFRS when compared to those derived under pre-changeover Canadian GAAP. While the means and medians of IFRS ratios differ from the means and medians of the same ratios under pre-changeover Canadian GAAP, the differences are no...

Summary Fitch's Equity Implied Ratings and Probability of Default (EIR) model is estimated to provide a view of a firm's credit condition given its current equity price and available financial information. The Fitch EIR model is a... more

Summary Fitch's Equity Implied Ratings and Probability of Default (EIR) model is estimated to provide a view of a firm's credit condition given its current equity price and available financial information. The Fitch EIR model is a proprietary hybrid probability of default and rating model that incorporates an option-based barrier model with hybrid adjustment of firms' financial and market information.

This report will attempt to analyse the Financial Performance of easyJet over the last 5 years (2008-2012). The report starts by introducing the sub-industry of the LCCs (Low Cost Carriers) as well as the chosen company, easyJet. From... more

This report will attempt to analyse the Financial Performance of easyJet over the last 5 years (2008-2012). The report starts by introducing the sub-industry of the LCCs (Low Cost Carriers) as well as the chosen company, easyJet. From there, we immediately dig into the financial analysis of the company. We are approaching this analysis from, predominantly, an Investor’s angle. Even though Company Valuation and, possibly, other areas are out of the scope of this report and they would have been useful in completing the picture, we will try and shed some light on the financial health of easyJet and whether it can be seen as a potentially good investment.
easyJet’s accounts are published on the 30th of September of the respective year. We will generally be using easyJet’s Annual Reports as a source of data unless otherwise noted. In that case, the Osiris database (BvD, 2013), OneSource (OneSource, 2013) or other sources will be used. This data will act as the catalyst to different financial ratios used.

Profitability is always a main consideration for businesses. In this study, return on assets is modeled and compared with two different methods. Multiple linear regression and logistic regression are established with financial statements.... more

Profitability is always a main consideration for businesses. In this study, return on assets is modeled and compared with two
different methods. Multiple linear regression and logistic regression are established with financial statements. The two
models in the study were evaluated. Their strengths to each other were determined.

Fast food restaurants continue its presence in the Philippine market for more than twenty years. Up to now, these companies never ceases to maintain its presence to capture the desired market. Jollibee and McDonald’s, the two competing... more

Fast food restaurants continue its presence in the Philippine market for more than twenty years. Up to now, these companies never ceases to maintain its presence to capture the desired market. Jollibee and McDonald’s, the two competing giants in the Philippines, have competed in terms of offering various food products and services to its customers. But the question remains which company is more successful in managing its operations. Using the financial statements of Jollibee and McDonald’s for the years 2000 – 2004, an analysis was performed using financial ratios for both companies. Results show that Jollibee has performed better than McDonalds in terms of the financial ratios, since Jollibee has been operating profitably for the past 5 years. McDonald’s has to continue striving to recover the deficit and eventually, improve its operations. In this paper, the Du Pont analysis for Return on Equity was also presented, together with contemporary issues such as Forecasting, Benchmarking, the Balanced Scorecard, and Corporate Social Responsibility that would affect Jollibee, McDonald’s, and the entire QSR Industry.

Abstract: Published research on Industrial Revolution 4.0 (IR4.0) is centered around conceptualization and public policy announcements, staying largely esoteric and under-explored. However, with Covid-19 Lockdowns creating an economic... more

Abstract: Published research on Industrial Revolution 4.0 (IR4.0) is centered around conceptualization and public policy announcements, staying largely esoteric and under-explored. However, with Covid-19 Lockdowns creating an economic crisis out of a health crisis, India will put its IR4.0 strategy on fast-track to play a meaningful role in the global supply chain rivalling Indonesia and Philippines. The current study analyzes FDI inflows to India between 2013-14 and 2018-19 using a GLM repeated measures model to uncover insights regarding industry verticals and investor countries that offer future business opportunities. The study found that FDI inflows to India are volatile and though USA is a large investor there are no significant differences among investor countries. Rather than manufacturing, service sector attracts FDI and India’s IR4.0 strategy can be built on software development for industrial IoT, human-machine interface technologies and collaborative software. Indian businesses should improve their financial performance by deleveraging. It is also pertinent that public policy focuses on improving business environment and plan out the structural changes that will occur with IR4.0 addressing the employment and skilling threats.

This study on the effect of financial statement analysis on investment decision making in commercial banks: Case study UBA Cameron Plc. sought out to establish the effect of trend analysis, ratio analysis and cost-volume/profit analysis... more

This study on the effect of financial statement analysis on investment decision making in
commercial banks: Case study UBA Cameron Plc. sought out to establish the effect of trend
analysis, ratio analysis and cost-volume/profit analysis on investment decision making in UBA
Plc. Using regression method of analysis we established that trend analysis, ratio analysis and cost￾volume/profit analysis have significant effects on investment decision making of UBA Plc. In
conducting this research we used secondary data. Furthermore, quantitative and descriptive
methods of analysis were adopted as well as tables, frequency/simple percentage methods, and
ttest method were used to examine the effect of trend analysis, ratio analysis and costvolume/profit
analysis on investment decision making. Thus, the findings implied that a unit change in the trend
analysis, cost-volume/profit analysis and ratio analysis resulted into a change in investment
decision making in UBA Plc. Therefore, we recommended that, users of financial statements need
to have at least, a fair knowledge of accounting so as to enable them understand and appreciate
accounting information and financial ratios should be used with careful examination and proper
understanding of the meaning, implication and effect of the actual figures shown in financial
statements, in order to avoid making wrong judgments, conclusions and decision

In this thesis, it was aimed to find a relationship between reinsurance cost which is the money paid by the insurance company to share the risk of insurance contract and financial and technical ratios which are good monitoring tools for... more

In this thesis, it was aimed to find a relationship between reinsurance cost which is the money paid by the insurance company to share the risk of insurance contract and financial and technical ratios which are good monitoring tools for insurance companies. This thesis was written in the hope of giving an idea about reinsurance. The relationship between reinsurance cost and financial and technical ratios was established and panel data regression was performed to obtain an empirical result. The data obtained from the official website of the IAT was used in this study. This data includes nine years of the total 27 non-life companies (2009 - 2017). Hypotheses have been tested to find the determinants of the reinsurance cost.

This study examines the effect of market risk on the financial performance of 31 non-financial companies listed on the Casablanca Stock Exchange (CSE) over the period 2000–2016. We utilized three alternative variables to assess financial... more

This study examines the effect of market risk on the financial performance of 31 non-financial companies listed on the Casablanca Stock Exchange (CSE) over the period 2000–2016. We utilized three alternative variables to assess financial performance, namely, the return on assets, the return on equity and the profit margin. We used the degree of financial leverage, the book-to-market ratio, and the gearing ratio as the indicators of market risk. Then, we employed the pooled OLS model, the fixed effects model, the random effects model, the difference-GMM and the system-GMM models. The results show that the different measures of market risk have significant negative influences on the companies’ financial performance. The elasticities are greater following the degree of financial leverage compared with the book-to-market ratio and the gearing ratio. In most cases, the firm’s age, the cash holdings ratio, the firm’s size, the debt-to-assets ratio, and the tangibility ratio have positive effects on financial performance, whereas the debt-to-income ratio and the stock turnover hurt the performance of these non-financial companies. Therefore, decision-makers and managers should mitigate market risk through appropriate strategies of risk management, such as derivatives and insurance techniques.

The purpose of this paper is to explore the differences and similarities between financial distress prediction (FDP) models and to determine which explanatory variables and methodologies are the most effective in prediction of financial... more

The purpose of this paper is to explore the differences and similarities between financial distress prediction (FDP) models and to determine which explanatory variables and
methodologies are the most effective in prediction of financial distress. For this purpose,
167 manufacturing companies (full sample) listed in Istanbul Stock Exchange (ISE) were used. In total, 27 financial ratios were identified from previous literature studies as potentially significant and they were calculated for the years 2009 and 2010. In the study, logistic regression, artificial neural networks and decision tree methods, which are frequently used in the literature, have been employed. As a result, many of the financial ratios are found to be effective in predicting financial distress. Moreover, logistic regression and artificial neural network methods have indicated better prediction accuracy
results of financial distress for classification of companies.

To evaluate the financial condition and performance of a company the financial analyst needs certain yardsticks. The yardstick frequently used is a ratio, or index relating two pieces of financial data to each other. When comparing... more

To evaluate the financial condition and performance of a company the financial analyst needs certain yardsticks. The yardstick frequently used is a ratio, or index relating two pieces of financial data to each other. When comparing changes in the business's ratios from period to period, you can pinpoint improvements in performance or developing problem areas. By comparing the ratios to those in other businesses, you can see possibilities for improvement in key areas. This paper focus on the main financial ratio calculated for the activity’s entities referring to average levels registered for Romanian’ entities in comparison with average level registered in Europe and generally, in the world.

Financial Statement Analysis. Author: Andrew Temte ©

The paper considers conceptual, methodical and practical aspects of the target financial analysis at the micro level, i.e., the company level, as a new instrument of anticrisis financial management for a company to overcome its financial... more

The paper considers conceptual, methodical and practical aspects of the target financial analysis at the micro level, i.e., the company level, as a new instrument of anticrisis financial management for a company to overcome its financial difficulties and enhance its financial position within a time-period of practically any length. The methodology of the research, the results being presented in the paper, is based on the concept of the financial ratio analysis, the concept of the company cash flows, and the concept of the Balanced Scorecard (in terms of its financial score). It is depicted that the procedure of the target financial forecasting comprises an appropriate information-accounting support, a target financial forecasting of the company financial position, a target forecasting of the company's cash flows, a development of the specific events (managements' decisions) aimed at overcoming the company's financial difficulties and enhancing its financial position. The author has stated that in the present-day environment the target financial forecasting is an effective instrument of the financial forecasting that enables to set up the base for overcoming the company's financial difficulties and strengthening its financial position. The major fields of the target financial forecasting application are an anticrisis bankrupt company management, a management of the company at the verge of its bankruptcy, as well as a company's investment appeal enhancement (in terms of its financial aspect).

This research set out to review the financial performance of ZANACO bank from the year 2013 to 2015 using financial ratios. Three (3) ratios were adopted to establish its financial soundness namely; the profitability, solvency and... more

This research set out to review the financial performance of ZANACO bank from the year 2013 to 2015 using financial ratios. Three (3) ratios were adopted to establish its financial soundness namely; the profitability, solvency and liquidity ratio. The liquidity ratios used were the cash ratio, quick ratio and the current ratio. The results from these ratios showed the bank was quite liquid and was able to convert its assets to cash easily as the ratios were above one (1) except the cash ratio. The profitability ratios used included the return on asset, return on equity and the net profit margin. It was discovered that though the ratios were not constant an average ratio of them showed the bank is making profits from its services. The last but not the least ratio done was the solvency ratio. The solvency ratios used included the debt to asset, debt to capital and the debt to equity ratios. The ratios were in favour of the banking meeting its long-term obligations except the debt to equity. All in all, all ratios suggested the bank was financially sound during the period 2013 to 2015.

In the late 1990s, Greece proceeded to a major port governance reform, aiming to overcome observed deficiencies of its national port system. Twelve major ports of national interest were transformed from ‘public law undertakings’ to... more

In the late 1990s, Greece proceeded to a major port governance reform, aiming to overcome observed deficiencies of its national port system. Twelve major ports of national interest were transformed from ‘public law undertakings’ to government-owned port corporations. Responsibility of port governance was devolved to autonomous commercially driven port authorities. At a latter stage, two ports (Piraeus and Thessaloniki) were listed on the Athens Stock Exchange. Grounded on the discussions regarding port performance indicators, this paper examines the financial performance of this new port governance model. It does so through an empirical evaluation of the 12 port entities’ financial performance over a time span that corresponds to the sector’s reorganisation. The analysis suggests that certain rigidities are still present and further steps of modernisation and restructuring are essential. Despite profitable financial results in the case of most Greek ports of national interest, the examination of the financial accounts raises considerable doubts as to the efficiency of the ports’ organisational structures, currently in a transitional phase. These results are in line with suggestions that port governance in Greece does not respond, yet, to any of the potential matching framework configurations of structures and strategies that advance port competitiveness and have been identified in the port literature.