PREDICTOR RATIOS Definition

Bookmark and Share

PREDICTOR RATIOS: Most ratios are descriptive in nature; that is, they describe the firm as it is now. As you might expect, Predictor Ratios provide suggestions about likely future conditions for the firm. VentureLine provides two industry standard Predictor Ratios:

  1. Altman Z-Score - a valid predictor or bankruptcy, and,
  2. Sustainable Growth Rate - shows the degree to which a concern can grow using their retained earnings to fund growth.

Learn new Accounting Terms

POSITIVE REQUEST see POSITIVE CONFIRMATION.

PAYMENT is the satisfaction of a debt or claim; primarily money paid to fulfill an obligation.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.