Financial Ratios

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 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 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 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 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 investigates the role incremental information content of inflation-adjusted data plays in explaining the market value of equity and stock returns on the Istanbul Stock Exchange (ISE). We show the effect of inflation accounting application on basic financial ratios, and we test the value relevance of inflation-adjusted and historical cost-based book value and earnings. The findings show that inflation adjustment affects financial ratios significantly, which may create different risk assessments for the selected firms. Furthermore, the results indicate that both inflation-adjusted and historical cost-based earnings and book values are significantly value relevant. The two sets of data are not to be used as substitutes, but, rather, they are complementary. For this reason, inflationadjusted data should be required as supplementary data to the historical cost information rather than in place of historical cost data.

This paper considers a novel topic of comparing how firm failure differs through countries. Based on the behaviour of financial ratios, namely their changes through five years from six countries (United States, United Kingdom, Belgium, Croatia, Czech Republic, Estonia), it was found that median firms from these countries can follow very similar failure processes. Comparison with Laitinen's (1991) taxonomy of failure processes revealed that in more developed countries there is a behavioural tendency towards the chronic failing firm type, but in less developed former socialist countries, the opposite tendency towards the acute failing firm type occurs.

In the global market place, many companies have had to adapt their strategies to meet significant challenges. A strategy adopted by some companies has been international expansion via acquisitions. The need for expert knowledge to determine an appropriate company to acquire has been complicated by the sheer size of the global market place. The costs associated with this in relation to time and personnel have created the need for a computerised expert system to be developed. This paper endeavours to show how a proposed fuzzy based system can assist in the identification of a company for acquisition. The authors discuss the manipulation of the magnitude of fuzzy membership functions to communicate priorities within the system. The fuzzy system is designed to assist financial experts in identifying a suitable company for acquisition in the corporate acquisition process. This includes the deliberate weighting of certain inputs and results above others in the decision-making process. The system attempts to learn and simulate the human precedence given to particular financial statistics in company analysis. The system uses the magnitude of the fuzzy membership functions to reflect the human precedence given to each financial ratio. This enables a particular company's strengths and weakness to be considered while concurrently considering their significance and relevance to the acquiring organisation. The system will enable a larger number of companies to be analysed in a more time and cost-effective manner. The development of this system is intended to illustrate that a fuzzy system can aid the financial experts of an acquiring organisation in the global acquisition process. q

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...

The aim of this paper is to investigate whether a model utilizing cash-flow ratios in combination with other categories of financial ratios results in a model superior to a model that does not include cash-flow ratios. The study uses both, operating cash-flow and the traditional definition of cashflow, as proxies for cash-flow ratios. Other categories of ratios are profitability, activity, liquidity and leverage ratios. The results of the analysis show the superiority of the model using cash-flow ratios over the second model that does not include cash-flow ratios.

Firm investment decisions are shown to be directly related to financial factors. Investment decisions of firms with high creditworthiness~according to traditional financial ratios! are extremely sensitive to the availability of internal funds; less creditworthy firms are much less sensitive to internal fund availability. This large sample evidence is based on an objective sorting mechanism and supports the results of Kaplan and Zingales~1997!, who also find that investment outlays of the least constrained firms are the most sensitive to internal cash f low.

The present study provides empirical evidence on the economic benefits of enterprise resource planning (ERP) systems. We use a modified value chain approach and identify several ratios for each component of the value chain to reflect improvements as a result of the adoption of ERP systems. These financial ratios are tracked for 2 years for a group of companies that adopted ERP systems versus a group of companies that did not adopt ERP. Both univariate and multivariate statistics are used to test for differences. The key result of the present study is that the adoption of ERP systems leads to sustained operational efficiencies and improved overall liquidity. In addition, some support is found for increased profitability 2 years after the adoption of ERP and for improvements in accounts receivable management.

En el presente informe se evalúa el plan contable de los estados financieros de la empresa CENTRAL BAKERY S.A.C, en el periodo 2018 y 2019. La empresa CENTRAL BAKERY S.A.C, desarrolla actividades dedicadas a la preparación y distribución de postres y aperitivos en distintos distritos del Departamento de Lima en Perú, además de ello, cuenta con clientes reconocidos como Café Rocks, Starbucks, entre otros.

El plan contable de nuestra empresa inicia por los activos, pasivos y patrimonios con el objetivo de saber aquello con lo que se cuenta, seguido del Libro de Inventario de Balance Inicial, que agrupa determinadas cuentas en cada indicador, teniendo así un resumen ordenado y detallado, posteriormente en el Libro de Compra y Venta, se registra todas las compras y ventas realizadas durante el año por sus diferentes medios de pago o cobro, posteriormente, en el Libro de pago de servicios se registra el pago de los 3 servicios fundamentales para la empresa: luz agua y teléfono, luego, cada una de estas operaciones son registradas en el libro diario, después, se realiza el Libro Mayor que refleja todas las cuentas del balance (activo, pasivo y patrimonio) y todos los movimientos (compras, ventas y pago se servicios) de manera ordenada, de igual forma, se realiza el balance de comprobación que establece un resumen de nuestro estado financiero, las operaciones realizadas y permite visualizar en qué estado se encuentra la empresa, ya sea en pérdidas o ganancias. Para mayor detalle, se realiza el Análisis Vertical, Horizontal y Ratios teniendo como fuente principal el Balance General y Estado de Resultados, el análisis vertical determina que tanto representa cada cuenta dentro de cada elemento y en cada año, el análisis horizontal es elaborado para calcular la variación absoluta y relativa que ha sufrido cada una de las cuentas del balance y estado de resultados en el año 2018 y 2019, finalmente, los ratios explican los resultados obtenidos, siendo complementaria al Análisis Vertical y Horizontal.

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 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.

The present study provides empirical evidence on the economic benefits of enterprise resource planning (ERP) systems. We use a modified value chain approach and identify several ratios for each component of the value chain to reflect improvements as a result of the adoption of ERP systems. These financial ratios are tracked for 2 years for a group of companies that adopted ERP systems versus a group of companies that did not adopt ERP. Both univariate and multivariate statistics are used to test for differences. The key result of the present study is that the adoption of ERP systems leads to sustained operational efficiencies and improved overall liquidity. In addition, some support is found for increased profitability 2 years after the adoption of ERP and for improvements in accounts receivable management.

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.

Most financial statement analyses focus on firms belonging to industries that either contribute significantly to economic figures or posit in a highly competitive business environment. Whatever the motivation may be, financial statement analysis should be made available to all industries for reasons of comparability and benchmarking. So much so to industries that silently propel economic development and growth, of which the education subsector is. In the Philippines, there are only three listed firms in the education subsector. These are Centro Escolar University (CEU), Far Eastern University (FEU), and iPeople, Inc. (Malayan Colleges). This research paper aims to analyze the financial statements of these three firms for three periods (2009, 2010, and 2011) using liquidity ratios, activity ratios, leverage ratios, profitability ratios, and market value ratios. For liquidity, the following ratios were used: current ratio; quick or acid-test ratio; cash flow liquidity ratio; average collection period; and days payable outstanding. For activity, the following ratios were used: accounts receivable turnover; accounts payable turnover; fixed assets turnover; and total assets turnover. For leverage, the following ratios were used: debt ratio; debt to equity ratio; and times interest earned. For profitability, the following ratios were used: operating profit margin; net profit margin; return on total assets; return on equity; and basic earning power ratio. For market value, the following ratios were used: price-earnings ratio; market-book ratio; and dividend yield. Imploring a comparative approach, this research paper also seeks to come up with benchmark figures that will be useful for other firms (not publicly-listed) belonging to the education subsector. To do this, financial statements of CEU, FEU, and Malayan for the indicated periods were obtained from the Philippine Stock Exchange (PSE) website. Necessary information derived from these financial statements were summarized and used to compute the financial ratios for the three-year period. To provide a basis for analysis, for each financial ratio, the firm adjudged as the best one (using rule of thumb and ratio trends) was given three points, the next one, two points, and the last one, one point. The total points for each ratio category were then computed to arrive at an overall basis for analysis. Results showed that in terms of liquidity, FEU ranked first, followed by Malayan, then CEU; in terms of activity, FEU ranked first, followed by CEU, then Malayan; in terms of leverage, Malayan ranked first, followed by CEU, then FEU; in terms of profitability, FEU ranked first, followed by Malayan, then CEU; and in terms of market value, CEU and FEU tied for first and then Malayan followed. Overall, FEU (44 points) ranked first, followed by Malayan (40 points), then CEU (36 points).

Falsifying financial statements involves the manipulation of financial accounts by overstating assets, sales and profit, or understating liabilities, expenses or losses. This paper explores the effectiveness of an innovative classification methodology in detecting firms that issue falsified financial statements (FFS) and the identification of the factors associated to FFS. The methodology is based on the concepts of multicriteria decision aid (MCDA) and the application of the UTADIS classification method (UTilités Additives DIScriminantes). A sample of 76 Greek firms (38 with FFS and 38 non-FFS) described over ten financial ratios is used for detecting factors associated with FFS. A jackknife procedure approach is employed for model validation and comparison with multivariate statistical techniques, namely discriminant and logit analysis. The results indicate that the proposed MCDA methodology outperforms traditional statistical techniques which are widely used for FFS detection purposes. Furthermore, the results indicate that the investigation of financial information can be helpful towards the identification of FFS and highlight the importance of financial ratios such as the total debt to total assets ratio, the inventories to sales ratio, the net profit to sales ratio and the sales to total assets ratio.

Resumen -El siguiente artículo científico fue elaborado con una cuidadosa y minuciosa recopilación de información para poder brindarle al lector una experiencia del análisis financiero, del pasado y del presente; de la década de una de las empresas más importantes en el Perú. Graña & Montero tiene una historia tajante en el mercado de la construcción y obras públicas en nuestro país, es más que emocionante poder estudiarlo al detalle desde el ámbito financiero con todo lo que nos brinda sus estados por medio de plataformas oficiales como las que tenemos en la internet. Se consideró para esta oportunidad analizar los ratios y el EVA -Economic Value Added (Valor Económico Agregado traducido al español), a través de estas herramientas representativas de las finanzas y la contabilidad se realiza un análisis completo y un adecuado diagnóstico.

Financial ratios are used for all kinds of purposes. These include the assessment of the ability of a firm to pay its debts, the evaluation of business and managerial success and even the statutory regulation of a firm's performance. Not surprisingly they become norms and actually affect performance.' The traditional textbooks of financial analysis also emphasise the need for a firm to use industry-wide averages as targets , and there is evidence that firms do adjust their financial ratios to such targets.* Whittington (1980) identified two principal uses of financial ratios. The traditional, normative use of the measurement of a firm's ratio compared with a standard, and the positive use in estimating empirical relationships, usually for predictive purposes. The former dates back to the late nineteenth century and the increase in US bank credit given as a result of the Civil War when current and non-current items were segregated and the ratio of current assets to current liabilities was developed . From then the use of ratios both for credit purposes and managerial analysis, focusing on profitability measures soon began. Around 1919 the du Pont Company began to use its famous ratio 'triangle' system to evaluate its operating results, underpinning the modern interfirm comparison scheme introduced in the UK by the British Institute of Management and the British Productivity Council in 1959.

El presente trabajo sobre el ámbito del Análisis de Estados Financieros plantea como objetivo el análisis de liquidez comparado entre una empresa comercial y una empresa productiva. Se escogen como referencia las empresas NATRA S.A. (productiva) y DÍA S.A. (comercial) en el periodo contable que transcurre desde 2016 hasta 2018. Se realiza metodología analítica mediante técnicas matemáticas comúnmente aplicadas en ámbito de los Estados Financieros, que se aplican sobre datos obtenidos principalmente del Balance, la Cuenta de Resultados y la Memoria.

Para empezar el estudio, se realiza la introducción general del tema, empresas analizadas y definición precisa del objetivo. A continuación se exponen como antecedentes el estado actual de la cuestión del análisis de liquidez. Se continúa estableciendo el marco teórico de los 4 principales ámbitos a analizar: Fondo de Maniobra, Ratios Financieros, Periodo Medio de Maduración (PMM) y la Determinación del Capital Circulante; que son cuestiones que afectan directamente al funcionamiento de las empresas. Luego se realiza el análisis comparado de la liquidez entre ambas empresas (productiva y comercial) utilizando estos 4 ámbitos, y considerando también la evolución temporal en los 3 años analizados. Finalmente se establecerán unas conclusiones del análisis de liquidez en estas empresas y las posibles líneas futuras de investigación sobre las empresas comerciales y productivas.

I have conducted this project as a part of my Bachelor’s Course: Financial Statement Analysis. The project is creäted on five years of Annual Financial Statements of the company from 2011 to 2016. In evaluation for industrial benchmark, average of three companies is used; due to time and resource constrains. The competitors’ ratios were obtained from peers doing their term project on the respective companies. The competitors are Pak Suzuki Motors, Honda Atlas and Ghandhara Nissan Motors Limited.
Categories of Financial Ratios Analysed are:
The accounting ratios are clustered in to five categories:

1. Liquidity Ratios
The ratio shows the extent to which the firm can meet its financial obligations. Used to gauge a company's ability to pay off its debts in short term.

2. Profitability Ratios
It is a measure of the capacity to make a profit, and a profit is what has remained from income earned after you have deducted all costs and expenses these ratios relate to profits to sales and assets.

3. Asset Management Ratios
Measures the speed with which various accounts are converted into sales or cash-inflows or cash-outflows. That is the firm's success in managing its assets to generate sales.

4. Debt Management Ratios
It shows the extent to which a firm uses debt financing or leverage. It assess the financial leverage and financial flexibility of a firm.

5. Market Value Ratios
These ratios are a measure of the return on investment, and whether the prices are over/under priced.

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 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 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 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 attempts primarily to measure the financial performance of some selected private commercial banks in Bangladesh for the period 2006-2011 and to identify whether any relationship exists between a bank's years of operation and its performance. For this purpose five banks have been selected from different generations. The financial performances of these banks have been scrutinized from the following four dimensions: (1) profitability (2) liquidity (3) credit risk and (4) efficiency. The study concluded that there is no specific relationship between the generation of banks and its performance. The performances of banks are dependent more on the management's ability in formulating strategic plans and the efficient implementation of its strategies. The study findings can be helpful for management of private commercial banks in Bangladesh to improve their financial performance and formulate policies that will improve their performance. The study also identified specific areas for each bank to work on which can ensure sustainable growth for these banks.

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.

The ability to accurately predict potential corporate distress and to provide early warnings has become of interest not only to managers but also to external stakeholders of a company. In this way, and since there are very distinct differences in the accounting procedures and the quality of financial statements between the firms in Tunisia and those in the other countries, it may not be rational to adopt models developed elsewhere to forecast the potential distressed situations. Hence, the purpose of this study is to examine the effect of logistic regression on bankruptcy prediction accuracy of the Tunisian firms. Applying this statistical technique to a sample of 214 distressed companies, and 1550 "healthy" we determine those financial ratios that establish the differences between these groups, and thus predict possible financial distress. The results demonstrate that profitability, solvency and debt ratios are among the most significant ones for the wholesale and retail companies. For the manufacturing companies, profitability and leverage ratios are the most significant ones. In summary, our models can help managers, shareholders, financial institutions, auditors and regulatory agents in Tunisia to forecast financial distress.

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 study examines the effect of financial ratios on firm value. For this purpose, the firms in the sectors of Food-Drink-Tobacco and Basic Metal Industry involved in ISE 100 index are examined. In the study, the relation between firm value and financial ratios are analyzed by panel data analysis. In the analysis 36 firms operating in these sectors between 2002 and 2009 have been analyzed. The dependent variable of the study is firm value; the independent variables are financial ratios. As a result, it has been found out by panel data analysis that financial ratios influence the firm value. There is a significant and positive relation between receivables turnover and firm value; there is a significant and negative relation between inventory turnover and return on equity. No significant relation has been detected between the other ratios.

Although copious statistical failure prediction models are described in the literature, appropriate tests of whether such methodologies really work in practice are lacking. Validation exercises typically use small samples of nonfailed firms and are not true tests of ex ante predictive ability, the key issue of relevance to model users. This paper provides the operating characteristics of the well known Taffler (1983) UK-based z-score model for the first time and evaluates its performance over the twenty-five year period since it was originally developed. The model is shown to have clear predictive ability over this extended time period and dominates more naïve prediction approaches. This study also illustrates the economic value to a bank of using such methodologies for default risk assessment purposes. Prima facie, such results also demonstrate the predictive ability of the published accounting numbers and associated financial ratios used in the z-score model calculation.

Abstract. During the last three decades various models have been proposed by the literature to predict the risk of bankruptcy and of firm insolvency, which make use of structural and empirical tools, namely rating system, credit scoring, option pricing and three alternative methods (fuzzy logic, efficient frontier and a forward looking model).

The purpose of this study was to examine the performances of commercial hotel and casino hotel companies by employing both cash flow ratios and traditional ratios over the past five years. Using financial database from the Hotel and Motel section of the Mergent Online with SIC 7011, independent samples t-tests were used for the analysis. The performances of the commercial hotel and casino hotel companies were measured in the aspects of liquidity, solvency, and operation. This study revealed that cash flow ratios and traditional ratios could make different interpretations on the performance of liquidity. Statistically significant difference was found in liquidity between commercial hotel and casino hotel companies, indicating a possibility that the difference may be caused by type of hotel.

In collaboration with the Business Intelligence Service of London, UK and with the European Business School of Cambridge, UK, the Business Intelligence Journal (BIJ), produced by the Department of Business Management and Economics (BME) at the School of Doctoral Studies of the European Union, hosted at the Isles Internationale Université (IIU-EU) in Brussels, Belgium, publishes research, analysis and inquiries into issues of importance to the business community. Articles in BIJ examine emerging trends and concerns in the areas of general management, business law, public responsibility and ethics, marketing theory and applications, business finance and investment, general business research, business and economics education, production/operations management, organizational behavior and theory, strategic management policy, social issues and public policy, management organization, statistics and econometrics, personnel and industrial relations, technology and innovation, case studies, and management information systems. The goal of BIJ is to broaden the knowledge of business professionals and academicians by promoting free access and provide valuable insight to business-related information, research and ideas. All articles included in the BIJ are peer-reviewed. The Business Intelligence Journal is published semiannually (one volume per year) by the Business Intelligence Service of Secured Assets Yield Corporation Limited based in London, UK.

This study extends prior research by investigating the influence of firm characteristics on voluntary disclosure of financial ratios in the annual reports of Turkish listed companies. The sample consists of industrial firms listed in the Istanbul Stock Exchange (ISE). The firms' annual reports were downloaded from their corporate websites. As methodology, content analysis was utilised to determine the financial ratio disclosure level of the firms. The findings revealed that Turkish listed firms disclose, on the average, 5.37 financial ratios in their annual reports. Count data regression models (Poisson and Negative binomial) were used to test the hypotheses. The results of multivariate analyses indicate that firm size, auditor size, profitability and ownership diffusion have significant positive association with voluntary disclosure level of financial ratios, while leverage does not.

The dynamic nature of today's construction industry compels construction partners to seek strategies in order to improve performance. Current research introduces a performance evaluation model for construction companies in order to provide a proper tool for a company's managers, owners, shareholders, and funding agencies to evaluate the performance of construction companies. The model developed helps a company's management to make the right decisions. Financial, economical, and industrial data are collected from Egyptian construction companies for nine consecutive years ͑1992-2000͒. Five indices ͑models͒ are developed: company performance score, economy performance score, industry performance score, performance index, and performance grade. The models developed consider companies in four construction sectors: general building, heavy, special trade, and real estate. These models accommodate the effect of macroeconomic and industry related factors and company size on the performance evaluation. The final outcome of current research is a performance grade, which provides the performance of a construction company. The developed model is validated, which shows robust results.