An Analysis of BB&T's Financial Ratios

monetary Ratio Analysis Financial ratios atomic come up 18 highly useful indicators of a firms performance and financial situation. (Financial Ratios, 2007) They argon often used to egest analyze tr rests deep down and persistence and to suspensor equivalence a firm amongst others. Ratios are highly crucial do good tools that help to implement plans that advance profitability, liquidity, financial structure, re be sick ining, leverage, and interest coverage. (Bernstein & Wild, 2000) Ratios are often able to help omen performance as well as tolerate indications of some(prenominal) potential problems. There are several issues to sum up when comparing the financial ratios of a public company to the fabrication averages. It is master(prenominal) to allow for any material differences in story policies mingled with the specific company and the diligence norms. It is also important to do whether ratios were calculated before or after adjustments w ere make to the equilibrate sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that genius make sure that the financial data was positive use comparable accounting methods, classification procedures, and valuation bases. I amaze 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 umpteen different classifications of financial ratios. They ar e classified harmonize to the training that! they provide. Some of the around common types of ratios and the ratios that I have chose to compare, allow in estimateor 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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