Ratio Analysis : What Other Factors, Beyond Ratios, Need To Be Considered?
In my earlier article on Credit Management  pertaining to  the credit evaluation using non-financial aspects or factors, I have already mentioned that we cannot entirely assess a company using only Ratio Analysis.
Other additional  factors should be considered for example:
- the performance of the company’s competitors,
-  the standard average financial ratios for the industry this company is in, and then measure the company’s performance against these averages,
- the company’s image or reputation in the community,
- any possible litigation the company is involved in either as plaintiff or defendant,
- customer testimonials (good and bad),
- the market behavior of the market the company is in,
- any offshore threats to competition,
- workforce demographics, and
- a detailed review of the company leadership, including the executive staff (president and vice presidents), and the board of directors.Â
- Ratio Analysis: Which Ratios Have the Most Value?
- Ratio Analysis:Commonly Asked Questions.
- Competitive Analysis Using Financial Ratio Analysis
- Ratio Analysis And Commonly Asked Questions
- Ratio Analysis: Existing And Potential Net Tangible Asset Basis (NTA)
- Ratio Analysis Of A Company
- All Topics Under The Heading Of Financial Accounting Ratio Analysis Or The Interpretation Of Financial Statements In The Annual Report
April 10, 2006
Posted in: Ratio Analysis
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