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MARKET RATIO:Price-to-cash flows-ratio One of the business ratio analysis which we often come across is the Price-to-cash flow ratio. Append below in summary what is this market ratio is all about:- Ratio Purpose Formula Price-to-cash flow ratio To measure whether a company’s share price is high or low in the context of [...] Market ratio:Price-to-sales-ratio One of the business ratio analysis which we often come across is the Price-to-sales ratio. Append below in summary what is this market ratio is all about:- Ratio Purpose Formula Price-to-sales ratio Measures the relationship between the value of stock and the level of company. PS:note that sales volume is [...] MARKET RATIO:Price-to-book ratio One of the business ratio analysis which we often come across is the Price-to-book ratio. Append below in summary what is this market ratio is all about:- Ratio Purpose Formula Price-to-book ratio (P/B ratio) Measures the value that the stock market places on a company relative to its book value. Also [...] One interesting liquidity ratio is the defensive interval which reflects theoretically how long the company can survive or defend itself in terms of its available cash plus cash equivalent ( most liquid cash) versus its daily cash operating requirement. Ratio Purpose Formula Defensive ratio Used to indicate the [...] Earlier,the market/book ratio has been mentioned now we look at another useful market based ratio which is known as the Market value added ( MVA). MVA is the difference between the market value of the company and the total capital invested in the company. The formula of MVA is = market capitalization ( number [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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