How do categories of ratios provide a full picture of an organization’s health?
- Thursday Oct 22,2009 04:22 PM
- By diddy
- In Others
How could you assess which organization in an industry was best managed from a financial standpoint? How could you use comparative analysis to perform a three-year trend analysis?
Comparative Analysis, Financial Standpoint, Health, Organization, Ratios, Trend Analysis
One Comment
It is difficult to infer organizational performance from one or two simple numbers. Nevertheless, in practice a number of different ratios are often calculated in strategic planning endeavors and, taken as a whole and with some caution, these ratios do provide some information about the relative performance of an organization. In particular, a careful analysis of a combination of these ratios may help you to distinguish between firms that will eventually fail and those that will continue to survive.
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