2.3 Analysis of Financial Ratios
2.3 Analysis of Financial Ratios
2.3 Analysis of Financial Ratios
profit margins, rate of return on equity and rate of return on assets(Carmen &Kenneth, 2008;
Raghuram, 2005).
There are other ratios that could also be utilised to determine the financial efficiency of
the company. These entail the total expense ratio, operating expense ratio, net income ratio
depreciation expense ratio, asset turnover ratio and interest expense ratio. All these ratios can
prove to be highly significant in terms of effectively managing the financial strategies at the time
and after the period of recession (Carmen & Kenneth, 2008; Raghuram, 2005).
For this particular research, case study approach along with collecting the data from the banks of
United Kingdom was designed. These banks are selected carefully keeping in mind all the
requirements that is necessary to be generated from the investigated population sample. The
financial management strategies and tactics used by the banks of United Kingdom and the impact
of global economic recession on them is the prime objective behind this research.