Business Ratio Usefulness: As measured by Reliability and Comparability for figures stated by companies in annual reports
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
In this paper, the usefulness of business ratios as presented in reports from a random sample of companies traded at the Stockholm stock exchange is examined. Usefulness is defined as being a function of reliability and comparability. These comparisons have been made for a representative selection of companies over a period of five years. The results lead to the conclusion that business ratios in annual reports cannot be considered useful in their present state, at least not for the layman. A few possible routes to improve the situation are presented and discussed.
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IdentifiersURN: urn:nbn:se:su:diva-4766OAI: oai:DiVA.org:su-4766DiVA: diva2:194387