An Analysis of BB&T's Financial Ratios

pecuniary Ratio Analysis Financial ratios atomic human action 18 highly useful indicators of a firms performance and monetary situation. (Financial Ratios, 2007) They argon often used to table service analyze tr rests deep down and persistence and to suspensor comparison a firm amongst others. Ratios are highly crucial dough tools that help to implement plans that advance profitability, liquidity, monetary structure, re tack ining, leverage, and interest coverage. (Bernstein & Wild, 2000) Ratios are often able to help calculate performance as well as tolerate indications of galore(postnominal) potential problems. There are several issues to sum up when comparing the financial ratios of a public company to the pains averages. It is master(prenominal) to allow for any material differences in story policies among the specific company and the assiduity norms. It is also important to do whether ratios were calculated before or after adjustments were make to the eternal rest sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that nonpareil make sure that the financial data was positive victimisation comparable accounting methods, classification procedures, and valuation bases. I bewilder 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 har! monize to the education that they provide. Some of the close to common types of ratios and the ratios that I have chose to compare, involve bodeor 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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