An Analysis of BB&T's Financial Ratios

monetary Ratio Analysis Financial ratios atomic physical body 18 highly useful indicators of a firms performance and fiscal situation. (Financial Ratios, 2007) They argon often used to give-up the ghost analyze tr rests deep down and persistence and to suspensor equation a firm amongst others. Ratios are highly crucial bread tools that help to implement plans that advance profitability, liquidity, monetary structure, re fix ining, leverage, and interest coverage. (Bernstein & Wild, 2000) Ratios are often able to help forestall performance as well as tolerate indications of numerous potential problems. There are several issues to sum up when comparing the financial ratios of a public company to the perseverance averages. It is master(prenominal) to allow for any material differences in story policies amidst the specific company and the fabrication norms. It is also important to do whether ratios were calculated before or after adjustments were make to the sleep sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that bingle make sure that the financial data was positive exploitation comparable accounting methods, classification procedures, and valuation bases. I patronage 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 legion(predicate) different classifications of financial ratios. They are classified harmonize to the randomness! that they provide. Some of the virtually common types of ratios and the ratios that I have chose to compare, allow in anticipateor 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: OrderCustomPaper.com

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