Financial ratios

Introduction

Every organisation aims to maintain its market dominant position as well as to maximise its profitability through a series of activities, so as to remain competitive indoors framework of the market mechanism and to advance functions. It is necessary for managers to be familiar with the over all in all performance of the enterprise, in an effort to stupefy an effective strategic plan for companies prosperity and progress. Thus it is infixed to identify the capabilities of a company in economic terms, so as to enable first line management to realize the businesss objectives and targets, concerning its operations.

In an effort to examine an organisation in fiscal terms, so as to provide managers with sufficient information, referring to its economic evolution, certain financial statements befool evolved, such as Balance Sheet, Trial Balance, addition and Loss Account, Ratios and so on.

A companys published report and accounts will defend a confusing set out of figures. Whilst these figures will all be based on historical facts and can be taken as accurate, a question arises; what do these figures toy with? An answer to these question will require an analysis of the figures contained inwardly published report and accounts, using a series of monetary Ratios.

In this assessment, we will analyse and critically evaluate the most cat valium financial ratios by incorporating examples relevant to BMW(GB) Limited.



This assessment will be focusing mainly on the company BMW (GB); we will withal compare the results to those of MG Rover Group Limited. These financial ratios have been applied according to most recent figures that appear on the Athens-Fame electronic library.

Accounting Ratios

A ratio analysis transforms accounting numbers into meaningful ratios that highlight strengths and weaknesses of a business. This analysis does not require a thorough understanding of accounting or finance to be used.

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