Financial ratios selection

In order to establish this function, a logical preselection of appropriate data is carried out safeguarding a sufficient representation of the net worth, financial position, and results of the corporation. Here, it should be kept in mind that the financial ratios selected have to show only moderate correlations in order to avoid multicorrelation problems known from regression analysis. With the help of multiple discriminant... 

Table 9-6 shows the financial ratios for Tables 9-3 and 9-4. Table 9-7 is a summary of selected financial ratios and industry averages. 

Financial ratios are classified according to the information they provide. Table 15-6 provides a fist of selected financial ratios used in various pharmacy settings. Different ratios give different pictures of the company s performance and serve different analytical needs. Profitability ratios, liquidity ratios, and turnover ratios are described below. For further discussion of other financial report ratios please refer to Stickney (1999). 

Due to these methodological shortcomings, we now turn to an approach for selecting financial ratios and their weights in a more objective way. 

Financial ratios are condensed data reporting quantifiable facts. With their help, complicated facts, structures, and procedures of corporations are depicted in a simple way to permit a fast and comprehensive overview. Thus, financial ratios are appropriate for the complex task of comparative credit quality assessment. To simplify the methodology, the number of financial ratios used should not be too large, and every financial ratio must be economically plausible. The selection of particularly appropriate financial ratios is a significant component of every rating methodology. These financial ratios should represent areas of relevance for creditors as exactly as possible, like debt/equity ratio, profitability, and liquidity. In this context, not only the level of these financial ratios is important but also their development over time. 

On the basis of the selected appropriate financial ratios that show significantly different group means for industrial corporations of good and poor credit quality and are additionally fundamentally clear indicators, a quantitative rating model is developed with the help of discriminant analysis. 

The high hit ratios of the rating functions (96% for the industrial model) suggests that each of the selected four financial ratios (of the... 

Two mid-term objectives are closely related to the principal goal of RP. The first of them has to do with encouraging price competition, as it provides an incentive for companies to bring their prices close to the reference level. This is precisely one of the reasons why the European Commission5 recommends RP. The second mid-term objective concerns incentives, as it takes into account the cost-effectiveness ratio of prescription drags by increasing the financial responsibility of patients, which in turn may influence prescriber decisions. It is important to note that, unlike in traditional co-payment, under this system the patient s share of the cost of the product is avoidable if the patient and/or doctor select a product with a price that does not exceed the reference price. 

In addition to using financial statements for comparative horizontal and vertical analysis, ratios are another available tool. Developing relationships among financial statement items is the crux of ratio analysis. In this type of analysis, it is extremely important for the evaluators, such as creditors or management, to select the ratio applicable to their immediate area of concern. Then, the relevant ratio can be calculated for analysis, and, finally, more research might be necessary as ratio analysis is limited. 

I m not talidng about fun you can have at an amusement park, but CRE fun. Now that we have an understanding on how to solve for the exit concentrations of multiple reactions in a CSTR and how to plot the species concentration down the length of a PER or PER, we can address one of the most important and fun areas of chemical reaction engineering. This area, discussed in Section 6.1, is learning how to maximize the desired product and minimize the undesired product. It is this area that can make or break a chemical process financially. It is also an area that requires creativity in designing the reactor schemes and feed conditions that will maximize profits. Here you can mix and match reactors, feed steams, and side streams as well as vary the ratios of feed concentration in order to maximize or minimize the selectivity of a particular species. Problems of this type are what I call digital-age problems - because... 

Reaction Stoichiometry and Order of Addition. Reaction rates, product yields, and by-product formation can often be effectively managed by the selection of the appropriate ratios of reactants and raw materials as well as by the rate and order of addition of these materials. A fundamental mechanistic understanding of the process is essential for the effective evaluation of these parameters. Reaction kinetic information can be beneficial in defining the limiting reagent for the reaction under evaluation. More often, the financial impact of specific raw materials will be a key driver of the overall process economics and, as... 

The economic evaluation studies are based on normative criteria, independent of subjective opinions, which indicate preferences in any course of action. Every alternative is independent of the other ones and the measure of the economic preferences is made separately. Renkema and Berghout [10] distinguish four basic approaches to evaluate investment alternatives the financial approach, the multicriteria approach, the ratio approach, and the portfolio approach. Methods from the financial approach are usually recommended for the evaluation and selection of investment alternatives. Often used financial approach methods are the payback period (PP) method, the internal rate of return (IRR) method, and the NPV method. The latter is used to evaluate this project. 

---