3 Review(s)

This book specifically all Bank employees’ & the corporate executives who are looking for an easy-to-use reference book on financial ratios to assist them to evaluate the company performance in comparison to peer group as well as their past performance. Our aim is to make financial ratios simple and intuitive for everyone to understand. This book contains over fifty financial ratios and other calculations commonly used in while assessing the company funding requests at bankers’ level around the banking sector - including return on liquidity ratios, activity ratios, market ratios, return ratios and leverage ratio just to name a few. Given that a good understanding of financial ratios calculations & peer comparisons are important components of any credit decisions we set out to create a simplified handbook with short descriptions, calculations, and examples for each of the ratios. It is important to note that financial analysis is not always black and white. Two experienced finance people can sit down with identical financial information for a company, come up with different ratios, and both be right. Often, financial analysis is more of an art than a science. Accounting and business have their own language and, as with any language, sometimes the same words can have different meanings to different people. Always bear in mind that the meaning of a general ratio depends on context.