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What are Financial Ratios in Total Quality Management? PDF | Download eBooks

Learn Financial Ratios definition in total quality management with explanation to study “What are Financial Ratios”. Study financial ratios explanation with TQM terms to review total quality management course for online MBA programs.

Financial Ratios Definition

Financial Ratios Explanation

In benchmarking practices, financial details of the initiator firm are sometimes compared with the target firm which is called financial benchmarking. The financial ratios are very easy to obtain. Organizations upload their annual reports on the internet, detailing all the finances of the organization. Financial ratios include return on assets (ROA), return on investment (ROI) etc. For benchmarking based on financial ratios, the only needed things are balance sheet and income statement. Where on one hand, it is important to consider other measures for benchmarking, on the other hand, upper management usually is interested in the financial measures in order to get guidance for decision making.

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