Naslov
Financial ratios benchmarks – average of industry or some other measure?

Autori
Šestanj-Perić, Tanja ; Keglević Kozjak, Suzana ; Kovšca, Vladimir

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Economic and Social Development : Book of Proceedings of 43rd International Scientific Conference on Economic and Social Development – "Rethinking Management in the Digital Era: Challenges from Industry 4.0 to Retail Management" / Ribeiro, Humberto ; Costa, Marco ; Cerovic, Ljerka - Aveiro : VADEA, Varazdin, Croatia / University of Aveiro, Aveiro, Portugal / University North, Koprivnica, Croatia / Faculty of Management University of Warsaw, Warsaw, Poland / Faculty of Law, Economics and Social Sciences Sale - Mohammed V University in Rabat, Morocco, 2019, 205-211

Skup
43rd International Scientific Conference on Economic and Social Development

Mjesto i datum
Aveiro, Portugal, 15.07.2019. - 16.07.2019

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Benchmark ratios ; Financial analysis ; Financial ratios ; Financial statements

Sažetak
Financial ratios analysis is extensively used in practice as well as in empirical academic research. Moreover, it is common in most countries to issue statistical data about selected financial ratios by industries. Financial performance of a specific company based on financial ratios is very often assessed related to some benchmark. The mostly known benchmark measure for any financial ratio is industry average but even it could be calculated in two alternative ways. Beside industry averages, there are examples of different approaches to ratios statistics. In our paper we firstly investigate what measures are most often used as benchmarks, what are available alternatives and which are advantages and disadvantages of their use. We investigate that by means of hypothetical examples of current ratio. Then, we test different benchmark measures for current ratio on a sample of firms to analyze their effect on the performance rank of a single firm based on a specific benchmark measure. Finally, we give recommendations about the use of benchmark measures.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA