Dictionary of Financial Formulas and Ratios

Book excerpt: * Practical guide to financial formulas for the working manager The Dictionary of Financial Formulas and Ratios is a working, breathing document for active managers at any level of a business. As a reference work, it is designed to give specific information that will assist in the overall financial management of a company. The book is organized by topic; each chapter discusses the relevant content pertaining to the topic and shows actual formulas and ratios, as appropriate, how they are calculated and what the application and use of the information is in the broad contexts of financial management. This book is intended to be a ready reference, one that helps the reader understand the dynamics of their business. Are matters improving or getting worse? Do you know the reasons for changes in the financial condition of your business? Is a particular department or individual manager performing as expected and as needed? Topics covered include: Financial Statements and Related Ratios and Formulas, Asset Utilization Ratios, Solvency and Capital Structure Ratio, Profitability Ratios, Market Value Ratios, Cash Flow Management, Inventory Ratios, Capital Budgeting, Operational Efficiency Ratios.