RATIO INDICATORS FOR THE FINANCIAL STANDING OF FIRMS Cover Image

RACIO POKAZATELJI FINANSIJSKOG POLOŽAJA PREDUZEĆA
RATIO INDICATORS FOR THE FINANCIAL STANDING OF FIRMS

Author(s): Ninoslav Gregović, Nedžad Hodžić
Subject(s): Economy
Published by: Интернационални Универзитет у Новом Пазару
Keywords: enterprise; management; the financial position of the company; ratio analysis; analytical indicators

Summary/Abstract: Each company has to deal with a number of difficulties and challenges in its business surrounding which have to be resolved in order to achieve planned goals and justify their existence. In order to place itself in a desired state and achieve its set of goals companies need to gain results that justify its existence. Therefore business activities of a company must be highly rational and efficient in order to satisfy the needs of all interest groups. The importance of management decisions lies in the administration or management bodies of a company. Taking into consideration the importance of made decisions as well as their consequences as a prerequisite, management must use all available resources and instruments to make these decisions correctly and to implement them according to the plan in order to get the desired outcome. One of the key instruments which can be used by the management structures for decision-making are financial indicators which are the result of ratio analysis. The core subject of this work will be liquidity indicators and debt indicators, which are considered as basic indicators for the financial position of a company, with its main goal of assessing its importance for preserving the financial stability of the business.

  • Issue Year: 2014
  • Issue No: 06
  • Page Range: 92-105
  • Page Count: 14
  • Language: Bosnian