Why Do We Need Accounting?

why do we need accounting

What’s the point of accounting? If you ask an accountant that question, they may look at you like you’ve grown two heads. The real question should be, why wouldn’t we need accounting? It’s the backbone of our businesses and finances, the reason we were able to develop trade and commerce centuries ago. Without accounting, we wouldn’t have the […]

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Financial Operations Ratio-meaning and formula

Financial Operations Ratio-meaning and formula

The efficiency of the financial management of a firm is calculated through the financial operations’ ratio. This ratio is a calculating device of the cost and the return of financial charges. This ratio signifies a relationship between net profit after tax and operating profit.

The formula for the computation of this ratio is:

Financial Operations Ratio =net profit after tax/operating Read the rest