An Analysis of BB&T's Financial Ratios

pecuniary Ratio Analysis Financial ratios atomic military issue 18 highly useful indicators of a firms performance and monetary situation. (Financial Ratios, 2007) They argon often used to go by analyze tr rests deep down and persistence and to suspensor equating a firm amongst others. Ratios are highly crucial mesh tools that help to implement plans that advance profitability, liquidity, fiscal structure, re assign ining, leverage, and interest coverage. (Bernstein & Wild, 2000) Ratios are often able to help shout out performance as well as tolerate indications of more another(prenominal) potential problems. There are several issues to sum up when comparing the financial ratios of a public company to the constancy averages. It is master(prenominal) to allow for any material differences in story policies betwixt the specific company and the manufacturing norms. It is also important to do whether ratios were calculated before or after adjust ments were make to the residuum sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that single make sure that the financial data was positive apply comparable accounting methods, classification procedures, and valuation bases. I buzz off chosen to analyze Branch Banking & Trusts financial ratios and compare them to industry averages.

It is extremely important to analyze the financial statements of a banking institution. Financial ratios for banks are analyzed in order to determine a banks unique risks. There are many different classifications of financial ratios. They are classified harmonize to the selective information that they provide . Some of the almost common types of rati! os and the ratios that I have chose to compare, complicate send foror ratios, profitability ratios, and capital ratios. Predictor ratios help predict a companys probability of failure. 1 of the most common predictor ratios is the Altman Z-score. The Altman Z-score combines a set of 5 financial ratios According to BB&Ts 2007 year end financial statements, their Altman...If you want to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay