A Note on the ‘Pyramid’ Technique of Financial Ratio Analysis of Firms' Performance

Bayldon, R.; Woods, Adrian; Zafiris, Nicos

doi:10.1111/j.1468-5957.1984.tb00060.x

Cited by 8 publications

(7 citation statements)

References 7 publications

(1 reference statement)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The pyramid of financial ratios (Courtis, 1978;Bayldon et al, 1984), with a hierarchical structure that links measures at different organizational levels, could help identifying the sources of strength and weakness in current performance, with a focus on "value drivers". This notion is combined with the indication of future performance and encouraging long term planning 2 .…”

Section: Discussionmentioning

confidence: 99%

Investigating the Relationship between the Social and Economic-financial Performance

Vaia¹,

Bisogno²,

Tommasetti³

2017

AFA

View full text Add to dashboard Cite

Hundreds of studies have explored and measured financial returns related to social performance (Margolis and Walsh, 2003), with controversial results. In addition to these studies" outcomes, we found, in this body of literature, a lot of innovation in the integration and adaptation of financial analysis tools and models to the study of statistical relationships.In this paper, we investigate the relationship between corporate social performance and corporate financial (and economic) performance, using multiple measures of financial and social performance and by looking statistically at the movement of actual financial and social performance over time. We emphasize the worth of statistical analysis in traditional financial representations.Our findings show how ratio analysis and statistical cause-and-effect validation are not alternatives for developing the financial analysis of sustainability and reporting. We show, through constant testing and a double learning process, the critical relationship between the key factors of financial, economic and social performance.

show abstract

Section: Discussionmentioning

confidence: 99%

Investigating the Relationship between the Social and Economic-financial Performance

Vaia¹,

Bisogno²,

Tommasetti³

2017

AFA

View full text Add to dashboard Cite

show abstract

“…Also, several accounting and finance studies present a subjective classification of financial ratios based on the practical experience or views of the authors, with a selected set of financial ratios (Courtis, 1978;Bayldon et al, 1984). Despite the fact that the above issue (finding a perfect model to measure performance before and after M&A action) remains unanswered, the determination of a set of financial ratios that could cover and examine the whole activities of a firm is the more appropriate solution to this problem, according to a suitable ratio classification.…”

Section: Variable Classification and Ratio Selectionmentioning

confidence: 99%

An accounting examination of the long-run performance of Greek acquiring firms

Pazarskis

Lyroudi

Pantelidis

et al. 2011

IJFSM

View full text Add to dashboard Cite

This paper examines empirically the impact of M&As on the post-merger performance of Greek merger-involved firms in the long-run perspective. Τhe post-merger performance of an extensive sample of acquiring listed firms is investigated with accounting data analysis. For the purpose of the study, an explanatory set of 24 financial ratios (divided into five main groups) is employed, in order to measure firms' post-merger performance. The results revealed that six out of all the examined ratios had decreased and showed, in general, deterioration in several business functions of merger-involved firms' performance in the post-merger period.

show abstract

“…The pyramid of financial ratios (Courtis, 1978;Bayldon et al, 1984) has an explicit hierarchical structure, linking measures at different organizational levels ( Figure 1). Two of the main contributions of this approach towards financial analysis are that it helps to identify the sources of strength and weakness in current performance, and to focus attention on 'value drivers'.…”

Section: Breaking Down Ratios: the Dupont Ratio Pyramidmentioning

confidence: 99%

An integrated framework for the financial analysis of sustainability

Castro

Chousa

2006

Bus Strat Env

View full text Add to dashboard Cite

Financial analysis, traditionally considered as a suitable tool for assessing a company's financial and economic situation and guiding the decision-making processes of companies and financial markets, should embrace sustainability issues within its logic, under some kind of scheme or framework that permits the evaluation of a company's sustainable management system and the impact of sustainability issues on financial performance. An integrated model is needed that takes into account the social, environmental and economic performances of a company and their expression using data that is both quantitative and qualitative, accounting and non-accounting, physical and monetary. In this paper an integrated framework for the financial analysis of the creation of sustainability-oriented value in companies is proposed.

show abstract

A Note on the ‘Pyramid’ Technique of Financial Ratio Analysis of Firms' Performance

Cited by 8 publications

References 7 publications

Investigating the Relationship between the Social and Economic-financial Performance

Investigating the Relationship between the Social and Economic-financial Performance

An accounting examination of the long-run performance of Greek acquiring firms

An integrated framework for the financial analysis of sustainability

Contact Info

Product

Resources

About