What is meant by internal benchmarking in ratio analysis

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: How do the Internal-Rate-of-Return Criterion relate to the PW Analysis?

A: Capital budgeting:   It is the process in which the business uses to determine which proposed fixed…

Q: How should one establish performance measurements? And how can they be aggregated?

A: Business Sustainability: Business sustainability is increasing the business worth for a long term,…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: What does a quick ratio show?

A: The study or analysis of the line items in the company's financial statements is known as a ratio.…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: Which is more meaningful, a single ratio data point or the trend shown by several ratio data points?

A: Ratio analysis is the study of several financial data points found in the financial statements of an…

Q: What is meant by volatility clustering? Briefly describe two models that areused to describe data…

A: When the large changes in financial asset prices are bundled together that further leads to results…

Q: Define efficiency ratios

A: Efficiency Ratios : These ratios are employed to evaluate the efficiency with which the firm manages…

Q: Which method is used to see if a relationship between the cost driver and total cost exists?…

A: Cost drivers means activity units that will cause change in total cost for example, number of…

Q: What type of testing are ratios?

A: Ratio:   It is a number expressed in terms of another to establish a relationship among them.

Q: how did you find the margin ratio?

A: A margin ratio is a financial metric that measures the % of profit generated from an entity's…

Q: coefficient of correlation is used to obtain what?

A: The correlation coefficient could be a measurable degree of the quality of the connection between…

Q: an you describe with examples of the advantages and disadvantages of ratio analysis?

A: Ratio Analysis: Ratio analysis is a financial metric used by financial managers for analyzing and…

Q: Explain Key Statistical Relationships between Covariance and Correlation of Returns?

A: Covariance:It is defined as the statistical relationship between stock prices of stock that vary…

Q: Differentiate between variance analysis and sensitivity analysis

A: Managers of small businesses can benefit from both variance and sensitivity analyses when trying to…

Q: Explain the arguments for and against using historical cost as a measurement base.

A: Historical Cost Accounting is a method of accounting in which the assets in the balance sheet are…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: What is cost approach measurement?

A: A process that involves finding out the economic value or the fair value of a business entity refers…

Q: Why is ratio analysis so significant?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Why are comparative ratio analyses useful?

A: Financial analysis can be defined as the evaluation of the profitability, durability and feasibility…

Q: explain what is The current ratio with a comprehensive example.

A: The objective of this question is to understand the concept of the current ratio, which is a key…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…