Financial ManagementMeeting – 2

Fadhil Ismi – Syiah Kuala University

Example Ration in Business• Your Subtopics Go Here

Source : http://multiplier-effect.org/files/2011/07/Financial-Ratios-

for-Non-financial-business-sector.png

Definition of Ratio

„ Ratio means to compare how one number related to another number

Keyword : COMPARE

To compare income in company, to see it’s increase or decrease, Every

year

Kin

d o

f R

atio

1. (Liquidity Ratio)

2. (Solvability Ratio)

3. Profitability Ratio

4. Activity Ratio

5. Market Ratio

LR Are used to determine

a company’s ability to

fulfill their short term

debt “On Time”.

Ex : Payment of

Electricity, phone, water,

Employee salaries

Liq

uid

ity

Ra

tio

(LR

)

Keyword :

Short Term debt

So

lva

bil

ity

Ra

tio

(SR

) .

. . .

SR Are used to

determine a

company’s ability to

fulfill their Long

term debt “On Time”.

Ex : Bank Loans, credit

debt business partner

Keyword :

Long Term debt

Relation Liquidity and

Solvability

LiquiditySolvability Liquidity

InSolvability

ILiquiditySolvability

ILiquidity InSolvabi

lity

Health and Good

Companies

Warning! Must

find Solution. The

Activity “ Dig A

hole Cover A

hole”

Warning! Must

find Solution. The

Activity“ Dig A

hole Cover A

hole”

Bad Companies,

The solution is

Mergers or

acquisitions

Unique Solution to Warning and

Bad Companies

Efficiency all Expanses

Sales Asset as funding needs

Product Innovation

Effectivity on work

Streamlining management ( Early retire )

Thank You…

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