Key Management Ratios: How to Analyse, Compare, and Control the Figures that Drive Company Value

ISBN-10: 0273039571
ISBN-13: 9780273039570
Series: Key Management Ratios
Pages: 260
Language: English
Published: 1993
Publisher: Pitman Pub.
Author: Ciaran Walsh

Description

Managers are increasingly required to advance the performance of the unit for which they are responsible, whether it be a department, a division or the company itself. One of the key tools used to survey a company's performance quickly is ratio analysis. With all the conflicting areas that demand attention, ratios can inform management about the issues to which it must give priority, directing it towards the most beneficial long-term strategies as well as towards the most effective short-term decisions. There are dozens of ratios that deal with all aspects of a business. However there are only a vital few that are important in understanding company performance. This set of interconnected ratios provides the chain that links the shop floor to the floor of the stock exchange. Through this chain it is possible to trace the effect that a change in an operating variable such as labour cost has on the value that the investing community puts on the company as a whole. This comprehensive book provides a clear and concise explanation of all the essential ratios that managers need. It examines the reason for their importance, their method of calculation, the standards you should expect from them and finally explores their inter-relationships. Key Management Ratios concentrates on those ratios that are vital to business success; links overall return on investment into the day-to-day operating parameters of the business; provides a set of standards and ranges that enables managers to pinpoint their own company's performance in key result areas; and shows how to analyse, compare and control the figures that drive company value. This book uses a minimum of text and a maximum of powerful graphical illustrations. This leads to the greatest comprehension in the shortest space of time.