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The main metrics used in the analysis

Posted: Sun Jan 19, 2025 10:54 am
by maksudasm
calculation can be done using the formula:

Rsk = Net Profit / Equity

The operating non-current assets return ratio is an indicator of the efficiency of using the company's fixed assets and intangible assets to generate profits during its operating activities. It is calculated by the formula:

Rova = Net Profit / Average Value of Operating Non-Current Assets

The return on current assets ratio is an important financial indicator that reflects the level of efficiency of using the company's current operating assets to generate profit. Calculation formula:

Roa = Net profit / Average value of current assets of the enterprise

This group of coefficients turn leads into sales with overseas chinese in worldwide data reflects the ability of the company to meet its financial obligations in a timely manner, using the high liquidity of the company's assets for this purpose. To assess the liquidity and solvency level of the enterprise, it is necessary to know the following indicators:

Absolute liquidity ratio is an indicator that reflects the ability of a company to pay its short-term financial obligations on a certain date;

the current liquidity ratio is a financial indicator calculated on the basis of the company's most short-term operating assets and helps to assess its readiness to meet obligations when the need arises. When analyzing the dynamics of this indicator, it is important to take into account the factors that may affect its change, for example, growth caused by an increase in accounts receivable may indicate a negative economic situation of the organization and a potential risk to its financial stability;

The current liquidity ratio is an indicator of financial stability that reflects the ability to meet short-term financial obligations by managing the company's current assets;

The liquidity ratio for mobilizing funds is an indicator that allows us to assess how effectively an enterprise can use its material resources to quickly and safely pay for current agreements;

the equity ratio is an indicator that is used to measure the degree of financial stability of a company and its ability to pay off short-term obligations without attracting additional resources;

The solvency recovery ratio is an indicator that helps determine a company's ability to solve its financial problems and pay off its obligations in a short period of time;

The solvency loss ratio is an indicator that signals the potential risk of an enterprise losing its financial stability within the next three months.

Turnover ratios help to estimate how many times during a certain period of time an organization turns over its assets, which allows to judge the speed and efficiency of the company. With the correct application and analysis of these ratios, it is possible to identify possible problems in the use of the company's assets, identify potential improvements in busine