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Organize Your Financial Ratios Analysis with P A L M S

Elisa Rinastiti Muresan, PhD

(The author is an Assistant Professor of Finance at the School of Business, Long Island University at 1 University Plaza, Brooklyn, New York, NY11201. Tel. +1 – 718 – 488 1150, Fax. +1 – 718 – 488 1125, Email: elisa.muresan@liu.edu)

Professor Philip Wolitzer, CPA

(The author is a Professor Emeritus of Accounting at the School of Business, Long Island University at 1 University Plaza, Brooklyn, New York, NY11201. Tel. +1 – 718 – 488 1152, Fax. +1 – 718 – 488 1125, Email: PWolitzer@NYSSCPA.org)

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Organize Your Financial Ratios Analysis with P A L M S

Abstract:

Financial ratios are useful measures to provide a snapshot of a company’s

financial position. There are so many of them, making it difficult to decide and

memorize which one(s) would be the most appropriate to be used for getting the

overall financial picture about a company. Additionally, the interpretation of the

calculated ratios plays an important role in determining the quality of the financial

analysis of the company. This article presents a mnemonic formula, which is

intuitively appealing, original, and innovative; serving as an aid for identifying

the five most useful categories of financial ratios to obtain the overall picture of a

company’s financial position, the PALMS (Profitability, Asset utilization, Long-

term solvency, Market value, and Short-term solvency ratios). Not only is

PALMS easy to remember, it is also flexible to use and systematically intuitive to

interpret. PALMS help analysts to better organize their process of analyzing a

company’s financial position to arrive at a comprehensive and accurate

conclusion about the company.

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Introduction:

Financial ratios are employed to assess a company’s financial position relative to its industry or

peer1. The gauge of a financial ratio is the company’s accounting information2, which can be

found in the company’s main financial statements such as Income Statement and Balance Sheet.

Accordingly, in order to use3 a financial ratio, one needs a relatively decent knowledge of basic

mathematical and accounting concepts. The importance of financial ratios analysis is

unquestionable. For example, in regulating companies to file for their 10-K, the U.S. Securities

Exchange and Commission requires them to show their ratio of earnings to fixed charges4. In

analyzing the probability of default of a credit issuer, Standard and Poor’s, Moody’s, and

FitchIBCA use several types of financial ratios of the rated companies5. Even the most

commonly-used financial databases such as Dun and Bradstreet6, Compustat7, Mergent Online8,

and Datastream9 provide financial ratios data to aid researchers conduct a company’s

fundamental analysis. Therefore it is not surprising that in (introductory) corporate finance

textbooks, there will always be a section (sometimes even a chapter) dedicated on the discussion

of using (calculating and interpreting) financial ratios to analyze the financial position of a

1 Comparison to the industry is usually considered sufficient using up to four digits SIC level; and comparison to the peer usually depends on the amount of a firm's total assets, market capitalization, and stockholders’ equity. 2 The ‘main’ accounting report consists of Income Statement, Balance Sheet, Cash Flows Statement, and Statement of Equity holders. If needed, more explanations on the company’s financial position may be obtained in the Management Discussions and Analysis, and the Notes to Financial Statement. 3 The word ‘use’ here refers to the process of calculating and interpreting the financial ratios. 4 See the www.sec.gov/divisions/corpfin/forms/regsk.htm, Subpart 229.500, Item 503: Summary Information, Risk Factors and Ratio of Earnings to Fixed Charges. 5 See “Corporate Ratings Criteria” of Standard and Poor’s at www.standardandpoors.com/ratings; also see “Guide to Moody’s Ratings, Rating Process, and Rating Practices” at www.moodys.com/moodys/cust/ratingdefinitions; and “Corporate Rating Methodology” of FitchRatings at www.fitchibca.com. 6 See https://www.dnb.com/product/contract/ratiosP.htm. 7 See http://www.compustat.com/www/. 8 See http://www.mergentonline.com. 9 See http://www.datastream.net.

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company (see Table 1 for the list of commonly-used textbooks taught in introductory corporate

finance classes in the US, which discuss financial ratios analysis in their chapters).

Why are financial ratios so popular? Firstly, perhaps because they are intuitively easy to

calculate, simply define a set of accounting figures as the numerator and divide it with a set of

other accounting figures as the denominator10. Secondly, they are also relatively straightforward

to interpret because they refer directly to certain accounting figures11. Financial ratios, however,

have a few major drawbacks. Firstly, they depend on accounting figures, which can sometimes

be unreliable12. Secondly, there are so many types of them that make it uneasy to decide which

would be the most useful financial ratios to be employed. Thirdly there has been no method

designed so far, that will enable one to conduct a systematically and methodically comprehensive

analysis of the overall financial performance of a company. Nonetheless, each time a financial

analyst has to justify his/her analysis, he/she usually provides several figures of ratios, which

represent certain categories of a company’s financial position attempting to answer the five key

conditions of the company: (a) its profitability, (b) its ability to manage its assets effectively, (c)

its potential to stay alive and healthy as long as possible through efficacy management of its

sources of funding, (d) its competency to do better than its peer in the market, and (d) its

efficiency in managing its day-to-day activities. 10 The official definition of a Financial Ratio as defined by the U.S. Government Small Business Association can be found at http://www.sba.gov/test/wbc/docs/finance/fs_ratio1.html. 11 The U.S. Securities and Exchange Commission defines ‘General Standard’ financial ratios as ratios or statistical measures that are calculated using financial information that is reported in accordance with the GAAP (see the Final Rule of the Conditions for Use of Non-GAAP Financial Measures by the U.S. SEC in 17 CFR Parts 228, 229, 244 and 249, at http://www.sec.gov/rules/final/33-8176.htm). 12 Lanez J.A. and Callao S. (2000) find important differences in the situation of companies (liquidity, solvency, indebtedness and profitability) under different accounting principles. McLeay S. and Trigueiros D. (2002) show that the multiplicative character of the financial variables from which financial ratios are constructed is a necessary condition of valid ratio usage, not just an assumption supported by evidence. Kaminski K.A., Wetzel T.S., and Guan L. (2004) find that misclassification of financial ratios for fraud firms ranged from 58 – 98%, indicating limited ability of financial ratios to predict fraudulent accounting information.

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The P A L M S:

This article proposes the mnemonic method of “PALMS for Financial Ratios” to assess a

company’s financial position comprehensively, giving no opportunities to overlook any

important financial indicators. This method simply and conveniently uses the interface of a

normal palm with its five fingers stretched out representing the five key categories of all

financial ratios. Exhibit 1 shows the graphical illustration of this method in which P stands for

Profitability, A is the Assets Utilization, L denotes the Long-term solvency, M refers to the

company’s Market value, and S represents the Short-term solvency of the company. This method

is also intuitively systematic compared to its aliases (see Exhibit 2) that have been used variably

in the mix-and-match manner.

More specifically, the intuitive process of analysis in PALMS follows the flow of recording the

influential financial transactions that a company does throughout one financial period (see

Exhibit 3). Exhibit 3 illustrates a top-down approach that an investor would intuitively follow in

order to systematically analyze a company starting from the end result of the company’s

activities: profit. Profit results from smart management of assets and activities throughout a

financial period. In order to acquire the assets that the company needs to produce profits, some

funding is needed. A well-thought management of these sources of funding is also essential to

support the company’s longevity in business. For example, if a company uses too much leverage

and takes up too much debts, it may end up having to pay the interest and principal of the debts

extensively, resulting in reduced profit from its business activities. This in turn will not satisfy its

owners, the share/equity/stock-holders, whose perceptions play a crucial role in the company’s

future expectation. On the other hand, debts are less costly than equities and easier to obtain.

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Therefore, it is essential that a company makes the most appropriate decision to use debts or

equities as their source of funding. Lastly, but not less important, is the analysis of a company’s

ability to manage its short-term ordeals, managing its current assets and liabilities during a one-

period of financial activities.

The first letter in PALMS, P, signifies the first question of a company’s profit-making capability

(profitability). In this category, the three main financial ratios are the Profit Margin, Return on

Assets (ROA), and Return on Equity (ROE) Ratios (see Exhibit 4). Different types of profits

may be used as the numerators in the calculation process of the Profit Margin Ratio (Gross

Margin, Operating Income and Net Income), allowing different users to satisfy their need of

information. For example, a debtor may be more interested in assessing a company’s ‘operating’

rather than ‘net’ income. This is because debtors are entitled to their interest payments, which are

deducted from the company’s operating rather than net income. On the other hand, stockholders

are probably more interested in the company’s net rather than operating income because they are

only entitled to the company’s income after a deduction of all payment obligations.

The second letter in PALMS, A, refers to the direct sources that companies use/produce in order

to make profits: assets. Assets may be broken down into two main classifications, current and

fixed or other; whose determination of efficiencies may be gauged based on their ratios to the

company’s sales or total assets. Although not limited, especially for industrial companies, the

types of current assets that typically should be placed under scrutiny are Inventories and Account

Receivables. This is because if a company has too much inventory relative to its ability to sell, it

means the company may have taken on unnecessary storage, production, and selling costs

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affecting its level of profit. Additionally, it may also reflect the company’s weakness in planning

its production level. The amount of account receivables turnover also reflects the company’s

policy in asset management. This is because if the company is unable to obtain cash from its

credit sales relatively quickly, it may end up having to run its business without obtaining any

cash flows to support its current and near-future production.

The L letter in PALMS addresses the sources of funding that a company obtains to buy assets,

which produce its goods and services. Because these types of assets are used for more than one

year period, they should be funded by long-term obligations. The use of short-term financing can

result in a company having to file for a bankruptcy because the long-term assets would not have

produced sufficient income to pay off the short-term obligations. Therefore, the main inputs in

this category of ratio are long-term liabilities and equities. A ‘good’ balance of debts and equities

is required from a company because debts involve paying interest rate expenses every year and

paying back the whole principal at the end of the debt term. Moreover, if a company fails to meet

the debts indentures, debt-holders have the rights to force a company into bankruptcy. Another

form of long-term liabilities may also take form as a large sum of fixed expenses over a long-

term period such as the cost of leasing and other rent expenses that are in fixed operating

expenses. If a company fails to produce enough revenue to cover these long-term expenses, it

also indicates poor asset-liability management and is harmful for the company’s future.

Market Value Ratio (represented by M in the PALMS) describes most closely the performance

of a company's common stock in the stock market. There are two main financial ratios in this

category: The P/E (Price to Earnings) and B/M (Book to Market Value) Ratios. The P/E Ratio is

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normally used to determine whether a stock is 'expensive' or 'cheap'13. This indicates that a

company's common stock is priced based on the company’s ability to grow (generate) earnings.

Therefore, the logic is that the lower the stock price of a company compares to the ability of the

company generating earnings (as represented by the current earnings report14), the more

undervalued (cheaper) the stock is. The B/M Ratio assesses the difference of perception between

the market and the company’s management on the ‘real’ value of a company. This means, when

a company sells its stocks, the selling price of these stocks were recorded in the company’s

balance sheet, being established as the book value of the company. The market perception is

represented by the current price of the company’s common stock. If the B/M ratio is low, it

indicates that the value of the company may be higher than what the market currently thinks.

Therefore stocks with low B/M ratio are usually considered undervalued and worth buying.

Finally, the S in the PALMS, provides a picture of a company’s ability to manage its current

asset using its current liabilities. In other words, it is expected that a company holds enough

assets that can be quickly converted into cash, to pay its short-term (less than one-year) liabilities

such as credit purchases and interest expenses. If a company has current assets which are too low

compared to its current liabilities, it may mean that in an emergency event, the company may not

be able to make the necessary payments. The Quick and Cash Ratios refer more specifically to

the amount of cash that a company has to possess in order to pay off its current liabilities.

Furthermore, the level of balance between current assets and current liabilities may also be worth

looking at through the Net Working Capital ratio. 13 The term 'expensive' and 'cheap' are suggested in introductory business courses to provide an easier way of understanding the concept. 14 Earnings here should be calculated from the Net Income minus all preferred preferences. This is because P/E ratio is used to assess a company's common stock and common stockholders are only entitled to the 'extra' income after all other preferred outflows have been delivered.

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Caveats on Consistency and Comparability:

Consistency and comparability are two of the basic concepts of GAAP. Financial ratios are the

result of a relationship between two or more items in a company’s financial statement. Therefore,

it is important to maintain consistency in calculating the financial ratios. If consistency is

neglected, the results of the financial ratios have no real significance and there can be no valid

comparability between periods of the same entity or as between two like entities.

Comparability falls apart when either the numerator or denominator in the financial ratios is

incorrectly calculated. For instance, if accounts receivable contains amounts for receivables

which are not due within 12 months, the numerator for current assets is overstated. Also, if a

bank loan due in 9 months is improperly classified as a long-term liability, current liabilities will

be understated. Similar misclassifications can occur within the components of any ratios,

rendering the result as misleading or useless.

Additionally, comparability also refers to the importance of choosing the appropriate benchmark,

because a benchmark supplies reference points that assess the performance of a company against

its competitors as well as being compared to the expectation of investors and analysts. Good

benchmarks and good ratios allow management to change direction and really manage a

company for optimum results. Unfortunately, possible manipulation by top management requires

good analysis to detect deception. Off balance sheet method, window dressing, related party

transactions, premature or false revenue recognition, are a few of the items that can alter

(modify) the ratios mentioned above. Thus, if these practices are present, assessing the financial

position of one company against its competitive benchmark will not truly reflect reality.

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The issue of good analysis to detect deception of top management has become more important,

especially after the Sarbanes-Oxley Act of 2002. The act encourages effective corporate

governance that puts a great deal of emphasis on the independent directors to act more

responsibly. This means, not following the CEO or CFO blindly, but to use their background,

experience, and business acumen to ask a lot of questions and really direct their company to

future ongoing success.

Conclusion:

The use of ratios has become a common technique to measure the performance of our day-to-day

lives. Financial ratios provide an assessment of a company’s financial position relative to its

industry or peer. This is because ratios are basically a comparison of two or more items.

Although the calculation process is simple, there are so many of them, that sometimes it can lead

to potential confusion in their practical usage. This article introduces the PALMS method to help

analysts better organize the process of their analysis of a company’s financial position. More

specifically, PALMS allows its users to conduct the analysis in a systematic and intuitive

manner. Additionally, by using PALMS, users will hopefully be better able to understand a

company’s financial stance without missing any important information about the company.

Lastly, even though financial ratios may be easily abused due to its simplicity and sources of

accounting data, they are able to provide a platform of benchmarking, which can be a good

method of control and a springboard for inquiring into variances for firms to evaluate themselves

and see where they stand in the business world.

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Table 1

Discussion on Financial Ratios Analysis in Corporate Finance Textbooks (in Alphabetical order of the first author)

Author Edition Title of Textbook Publisher Discussion on Financial Ratios Analysis

Block and Hirt 11th, 2005

Foundations of Financial Management

McGraw-Hill Irwin

Part II: Financial Analysis and Planning; Chapter 3: Financial Analysis

Bodie and Merton 2000 Finance Prentice Hall Part I: Finance and The Financial System; Chapter 3: How to Interpret and Forecast Financial Statements

Brigham and Houston

3rd, 2000

Fundamentals of Financial Management

South-Western, Thomson Learning

Part I: Introduction to Financial Management; Chapter 3: Analysis of Financial Statements

Brealey and Myers 7th, 2003

Principles of Corporate Finance

McGraw-Hill Irwin

Part IX: Financial Planning and Short-term Management; Chapter 29: Financial Analysis and Planning

Brealey, Myers, and Marcus

4th, 2004

Fundamentals of Corporate Finance

McGraw-Hill Irwin

Part VI: Financial Planning; Chapter 17: Financial Statement Analysis

Damodaran 2nd, 2001

Corporate Finance: Theory and Practice

Wiley Part I: Introduction to Corporate Finance; Chapter 4: Understanding Financial Statements

Eakins 2nd, 2004

Finance: Investments, Institutions, and Management - Update

Addison Wesley

Part III: Foundations of Corporate Finance; Chapter 14: Financial Statement and Ratio Analysis

Emery, Finnerty, and Stowe

2nd, 2004

Corporate Financial Management

Prentice Hall Part I: Foundations; Chapter 3: Accounting, Cash Flows, and Taxes

Gallagher and Andrew

3rd, 2003

Financial Management: Principles & Practice

Prentice Hall Part II: Essential Concepts in Finance; Chapter 5: Analysis of Financial Statements

Gitman 10th, 2003

Principles of Managerial Finance

Addison Wesley

Part I: Introduction to Managerial Finance; Chapter 2: Financial Statements and Analysis

Gitman and Madura

2001 Introduction to Finance Addison Wesley

Part II: Financial Tools for Firms and Investors; Chapter 8: Financial Statements and Analysis

Keown, Martin, Petty, and Scott Jr.

10th, 2005

Financial Management: Principles and Applications

Prentice Hall Part I: The Scope and Environment of Financial Management; Chapter 3: Evaluating a Firm's Financial Performance

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Keown, Martin, Petty, and Scott Jr.

4th, 2003

Foundations of Finance: The Logic and Practice of Financial Management

Prentice Hall Part I: The Scope and Environment of Financial Management; Chapter 4: Evaluating a Firm's Financial Performance

Ross, Westerfield, and Jaffe

7th, 2005

Corporate Finance McGraw-Hill Irwin

Chapter 2: Financial Planning and Growth

Ross, Westerfield, and Jordan

4th, 2004

Essentials of Corporate Finance

McGraw-Hill Irwin

Part II: Understanding Financial Statements and Cash Flow; Chapter 3: Working with Financial Statements

Ross, Westerfield, and Jordan

6th, 2003

Fundamentals of Corporate Finance

McGraw-Hill Irwin

Part II: Financial Statements and Long-Term Financial Planning; Chapter 3: Working with Financial Statements

Van Horne 12th, 2002

Financial Management and Policy

Prentice Hall Part IV: Tools of Financial Analysis and Control; Chapter 12: Financial Ratio Analysis

Van Horne and Wachowicz Jr.

11th, 2001

Fundamentals of Financial Management

Prentice Hall Part III: Tools of Financial Analysis and Planning; Chapter 6: Financial Statement Analysis

Werner and Stoner 2002 Fundamentals of Financial Managing

Authors Academic Press

Part I: About Finance and Money; Chapter 2: Data for Financial Decision Making

Werner and Stoner 2001 Modern Financial Managing: Continuity & Change

Authors Academic Press

Part I: Introduction; Chapter 4: Data for Financial Decision Making

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Exhibit 1

PALMS for Financial Ratios

PROFITABILITY

ASSET UTILIZATION

LONG-TERM SOLVENCY

MARKET VALUE

SH O R T

T E R M

S O L V E N C Y

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Exhibit 2

Aliases of the PALMS

The Big Five in PALMS Aliases

Profitability Ratios

Asset Utilization Ratios Operational / Efficiency / Managerial Decision / Activity / Turnover Ratios

Long-term Solvency Ratios

Leverage / Debt Management Ratios

Market Value Ratios Return to Investors Ratios

Short-term Solvency Ratios

Working Capital / Liquidity Ratios

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Exhibit 3

The Fundamental Process of Analyzing A Company’s Business Activities

Assets

Day-to-day Activities

Sources of Funding

Investors

watching for the company’s market value

Profit

2

3

4

5

1

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Exhibit 4

The List of Financial Ratios that Are Commonly-Used in Financial Analysis (not exhaustive)

Profitability Ratios

Profit Margin (1) = SalesIncomeNet

Profit Margin (2) = Sales

Income OperatingNet

Profit Margin (3) = Sales

Margin Gross

ROA = AssetsTotal

IncomeNet

ROE P1 = Equity Total

IncomeNet

Asset utilizations Ratios A1

Inventory Turnover A2 = Inventory Average

Sold Goods of Costs

Day's of Sales of Inventory A3 = TurnoverInventory

Days 365

Receivable Turnover A4 = Receivable Accounts Average

SalesCredit

P1 It is very common to include the very long-term debts (over 30-year maturity) as part of the denominator. A1 Financial ratios in this category are also commonly used to assess a firm's liquidity. A2 An average of quarterly or monthly end-of-the-month inventory data should provide a more accurate picture than the one-off end-of-the-year inventory data. A3 A more realistic consideration should take into account that the actual operating days of a firm during a one-year period is approximately 250 days. A4 An average of quarterly or monthly end-of-the-month accounts receivables data should provide a more accurate condition than the one-off end-of-the-year accounts receivables data.

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Average Collection Period A5 = TurnoverReceivable

Days 365

Net Working Capital Turnover = Capital gNet Workin

Sales

Fixed Asset Turnover = AssetsFixedNet

Sales

Total Asset Turnover = AssetsTotal

Sales

Long-term Solvency Ratios

Total Debt Ratio = Assets Total

sLiabilitie Total

Debt to Equity Ratio / Leverage = Equity Total

Debt term-Long

Equity / Financial Leverage Multiplier = Equity TotalAssets Total

Long-term Debt Ratio = Equity Total Debt term-Long

Debt term-Long+

Times Interest Earned Ratio = Interest

Income OperatingNet

Cash Coverage Ratio = Interest

onDepreciati Income OperatingNet +

Fixed Charges Coverage Ratio = Leases Operating Rent

Income OperatingNet +

A5 It should be considered that 250 days may be a more accurate numerator.

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Market Value Ratios

Price to Earnings Ratio M1 = SharePer Earnings

SharePer Price

Fully-diluted Earnings per share =

sharescommon ofdilution maximum including gOutstandin StocksCommon of Shares ofNumber sPreference Preferred - IncomeNet

Book-to-Market Ratio = SharePer ValueBook SharePer ValueMarket

Book Value per share = gOutstandin StocksCommon of Shares ofNumber

sPreference Preferred -Equity Total

Dividend Yield = StockCommon ofPriceMarket StockCommon Per Paid Dividend

Short-term Solvency Ratios

Current Ratio = sLiabilitieCurrent

AssetsCurrent

Quick Ratio = sLiabilitieCurrent

Inventory - AssetsCurrent

Cash Ratio = sLiabilitieCurrent

EquivalentCash Cash +

Net Working Capital to Total Assets = AssetsTotal

Capital gNet Workin

Interval Measure = Costs OperatingDaily Average

AssetsCurrent

M1 P/E Ratio is commonly used for assessing common stocks. Therefore, the price per share should be the price of the common stock.

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BIBLIOGRAPHY

Block, S.B. and Hirt, G. (2005). Foundations of Financial Management, 11th Edition, McGraw-

Hill Irwin.

Bodie, Z. and Merton, R.C. (2000), Finance, Prentice Hall.

Brigham, E.F. and Houston, J.F. (2000). Fundamentals of Financial Management, 3rd Edition,

South-Western, Thomson Learning.

Brealey, R.A. and Myers, S.C. (2003). Principles of Corporate Finance, 7th Edition, McGraw-

Hill Irwin.

Brealey, R.A., Myers, S.C., and Marcus, A.J. (2004). Fundamentals of Corporate Finance, 4th

Edition ,McGraw-Hill Irwin.

Damodaran, A. (2001). Corporate Finance: Theory and Practice, 2nd Edition, Wiley.

Eakins, S. (2004). Finance: Investments, Institutions, and Management – Update, 2nd Edition,

Addison Wesley.

Emery, D.R., Finnerty, J.D., and Stowe, J.D. (2004). Corporate Financial Management, 2nd

Edition, Prentice Hall.

Gallagher, T.J. and Andrew, J.D. (2003). Financial Management: Principles & Practice, 3rd

Edition, Prentice Hall.

Gitman, L.J. (2003). Principles of Managerial Finance, 10th Edition, Addison Wesley.

Gitman, L.J. and Madura, J. (2001). Introduction to Finance, Addison Wesley.

Kaminski K.A.; Wetzel T.S.; Guan L. (2004). Can financial ratios detect fraudulent financial

reporting? Managerial Auditing Journal 19 (1), 15-28.

Keown, A.J., Martin, J.D., Petty, J.W., and Scott Jr., D.F. (2005). Financial Management:

Principles and Applications, 10th Edition, Prentice Hall.

Keown, A.J., Martin, J.D., Petty, J.W., and Scott Jr., D.F. (2003). Foundations of Finance: The

Logic and Practice of Financial Management, 4th Edition, Prentice Hall.

Lanez J.A.; Callao S. (2000). The effect of accounting diversity on international financial

analysis: empirical evidence. The International Journal of Accounting 35 (1), 65-83.

McLeay S.; Trigueiros D. (2002). Proportionate Growth and the Theoretical Foundations of

Financial Ratios. Abacus 38 (3), 297-316.

Ross, S.A., Westerfield, R.W., and Jaffe, J. (2005). Corporate Finance, 7th Edition, McGraw-

Hill Irwin.

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Ross, S.A., Westerfield, R.W., and Jordan, B.D. (2004). Essentials of Corporate Finance, 4th

Edition, McGraw-Hill Irwin.

Ross, S.A., Westerfield, R.W., and Jordan, B.D. (2003). Fundamentals of Corporate Finance, 6th

Edition, McGraw-Hill Irwin.

Van Horne, J.C. (2002). Financial Management and Policy, 12th Edition, Prentice Hall.

Van Horne, J.C. and Wachowicz Jr., J.M. (2001). Fundamentals of Financial Management, 11th

Edition, Prentice Hall.

Werner, F.M. and Stoner, J.A.F. (2002). Fundamentals of Financial Managing, Authors

Academic Press.

Werner, F.M. and Stoner, J.A.F. (2001). Modern Financial Managing: Continuity & Change,

Authors Academic Press.