Favourable and Ratio analysis: Difference between pages

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Favourable is the opposite of ''adverse''.
1.
A method of financial analysis based on financial accounting ratios; comparing various accounting items with each other as ratios.
For example, Days sales outstanding.


For example in management accounting, favourable variances are good news, while adverse variances are bad new
2.
A broader quantitative analysis also including relevant operational and market measures in the various ratio calculations, as well as accounting items.
For example, Price to earnings ratios.


== See also ==
* [[Days sales outstanding ]]
* [[Financial analysis]]
* [[Price to earnings ratio]]


== See also ==
* [[Adverse event]]
* [[Variance]]
* [[B/(W)]]
* [[Risk averse]]
* [[Variance analysis]]

Revision as of 14:20, 23 October 2012

1. A method of financial analysis based on financial accounting ratios; comparing various accounting items with each other as ratios. For example, Days sales outstanding.

2. A broader quantitative analysis also including relevant operational and market measures in the various ratio calculations, as well as accounting items. For example, Price to earnings ratios.

See also