6 Basic Financial Ratios and What They Reveal

financial ratios examples

In terms of the share of women in ministerial positions, 11 out of 146 countries, led by Albania, Finland and Spain, have 50% or more ministers who are women. Further, populous countries such as India, Türkiye and China have less than 7% ministers who are women and countries like Azerbaijan, Saudi Arabia and Lebanon have none. The score distributions across each subindex offer a more detailed picture of the disparities in country-specific gender gaps across the four dimensions. Figure 1.3 marks the distribution of individual country scores attained both overall and by subindex. If a company has $500,000 in current assets and $250,000 in current liabilities, its Current Ratio is 2 ($500,000 / $250,000), indicating that it has twice the assets to cover its immediate obligations. Financial ratios are mathematical comparisons of financial statement accounts or categories.

financial ratios examples

After some fluctuations, parity on Economic Participation and Opportunity is also low, at 58.7%. Labour-force participation parity is at 72.7% and women earn 66.1% of men’s estimated earned income. Only 25.4% of senior officers and 34.3% of technical positions are held by women. Ranked 8th is Namibia, the highest-ranking Sub-Saharan African country in this edition, which has attained 80.2% gender parity, a 0.5 percentage-point decline since the last edition. Namibia has achieved full parity on both the Health and Survival and Educational Attainment subindexes, although their absolute levels of attainment are low for both women and men.

Advantages & Disadvantages of Ratios in Business

Return-on-equity or ROE is a metric used to analyze investment returns. It’s a measure of how effectively a company uses shareholder equity to generate income. You might consider a good ROE to be one that increases steadily https://personal-accounting.org/accounting-for-startups-7-bookkeeping-tips-for/ over time. This could indicate that a company does a good job using shareholder funds to increase profits. Return on equity (ROE) measures profitability and how effectively a company uses shareholder money to make a profit.

While there is now full parity in enrolment in secondary education, for literacy rate and enrolment in tertiary education, there remains a persistent gap. At 43.8% parity, Bangladesh’s Economic Participation and Opportunity subindex performance is one of the lowest globally (139th). Improvement in the estimated earned income since 2021 edition has helped drive this recovery, as the gaps across the other indicators show less change. Progress towards gender parity in Norway has been steady, resulting in Norway improving its gender parity score to 87.9% and climbing one rank to the 2nd position in this year’s index. A major part of Norway’s continuous improvement can be ascribed to its achievements on Political Empowerment (score 76.5%), which has increased by 27.1 percentage points since 2006. Women now assume 50% of the ministerial positions and 46.2% of parliamentary positions.

Average Collection Period

Compared to the previous edition, 13 countries have improved, led by Australia, New Zealand and Philippines. Australia and New Zealand had a considerable increase in the share of women ministers. Fiji, Myanmar and Korea have regressed the most among the six other countries where progress on Political Empowerment has reversed.

On the other hand, like several other high-income economies,3 the healthy life expectancy of women declined by almost 1.5 years since 2006, partly widening the present gender gap on Health and Survival (97%). Sub-Saharan Africa is the lowest-ranked region in closing the gender gap on Educational Attainment, with a parity score of 86%, and only Botswana, Lesotho and Namibia have achieved full parity. Sixteen countries have achieved less than 90% parity on this subindex, with the Democratic Republic of the Congo and Chad achieving the lowest scores.

Liquidity Ratios (Revision Presentation)

There is highly uneven progress in parity on this subindex among different countries. Algeria’s level of parity, 31.7%, is less than half of that of Israel which has closed 68.9% What Is Accounting For Startups of the gender gap. The United Arab Emirates and Egypt have registered increases in both the share of women senior officer positions and the share of women in technical positions.

financial ratios examples

Across all subindexes, Europe has the highest gender parity of all regions at 76.3%, with one-third of countries in the region ranking in the top 20 and 20 out of 36 countries with at least 75% parity. Iceland, Norway and Finland are the best-performing countries, both in the region and in the world, while Hungary, Czech Republic and Cyprus rank at the bottom of the region. Overall, there is a decline What is the Average Cost of Bookkeeping Services for Non-Profit Agencies? of 0.2 percentage points in the regional score based on the constant sample of countries. Out of the 35 countries covered in the previous and the current edition, 10 countries, led by Estonia, Norway and Slovenia, have made at least a 1 percentage-point improvement since the last edition. Ten countries show a decline of at least 1 percentage point, with Austria, France and Bulgaria receding the most.

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