Financial Ratios Notes: Definitions & Explanations PDF | Download eBooks
Study Financial Ratios lecture notes PDF with total quality management definitions and explanation to study “What are Financial Ratios?”. Study financial ratios explanation with TQM terms to review total quality management course for online MBA programs.
Financial Ratios Definition:
Numerical ratios of firm performance such as return on equity, return on assets, and earnings per share are called financial ratios.
Managing Quality: Integrating the Supply Chain by S. Thomas Foster
Financial Ratios Notes:
In benchmarking practices, financial details of the initiator firm are sometimes compared with the target firm which is called financial benchmarking. The financial ratios are very easy to obtain. Organizations upload their annual reports on the internet, detailing all the finances of the organization. Financial ratios include return on assets (ROA), return on investment (ROI) etc. For benchmarking based on financial ratios, the only needed things are balance sheet and income statement. Where on one hand, it is important to consider other measures for benchmarking, on the other hand, upper management usually is interested in the financial measures in order to get guidance for decision making.
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