RATIO ANALYSIS involves conversion of financial numbers for a firm into ratios. Ratio analysis allows comparison of one firm to another. Since ratios look at relationships inside the firm, a firm of one size can be directly compared to a second firm (or a collection of firms) which may be larger or smaller or even in a different business. Financial Ratio Analysis is a method of comparison not dependent on the size of either firm. Financial Ratios provide a broader basis for comparison than do raw numbers. In the VentureLine database the comparison is conducted against the industry (SIC Code) in which each particular listing is associated.
COOKING THE BOOKS is when a company fraudulently misrepresents the financial condition of a company by providing false or misleading information.
CARTE BLANCHE is unrestricted power to act at ones own discretion, i.e. unconditional authority.
Enter a term, then click the entry you would like to view.