The following points highlight the top ten techniques of performance evaluation. The techniques are: 1. Budgetary Control and Reporting 2. Balanced Scorecard 3. Variance Analysis 4. Contribution Margin 5. Return on Capital Employed (ROCE) 6. Residual Income (RI) 7. Value Added 8. Bench Marking 9. Ratio Analysis 10. Non-Financial Quality Performance Measures. Evaluation Performance: Technique # 1. Budgetary Control and [...]
The following points highlight the five main types of ratio analysis. The types are: 1. Profitability Ratios 2. Coverage Ratios 3. Turnover Ratios 4. Financial Ratios 5. Control Ratios. Ratio Analysis: Type # 1. Profitability Ratios: Profitability ratios are of utmost importance for a concern. These ratios are calculated to enlighten the end results of business activities which is the [...]
The following points highlight the top six advantages of ratio analysis. The advantages are: 1. Useful in Financial Position Analysis 2. Useful in Simplifying Accounting Figures 3. Useful in Assessing the Operational Efficiency 4. Useful in Forecasting Purposes 5. Useful in Locating the Weak Spots of the Business 6. Useful in Comparison of Performance. Advantages of Ratio Analysis: Useful in [...]