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Worldcom Financial Ratios Fraud

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... to the imbalance created by too high of a liquidity ratio. Efficiency and profitability are extremely important ratios to consider. Efficiency ratios measure the companies ability ratios best reflect the overall burden to a community. While direct debt ratios indicate the burden on the entity of its own capital costs, overall ratios best measure the inventories as well. Activity Ratios Activity ratios measure how effectively the firm is using its assets. profitability. These ratios are also referred to as "DuPont" ratios (MBA, 681). There are many other ratios that may be Liquidity Ratios Liquidity ratios are important tools for measuring a firm's ability to meet short-term obligations as they compare ...



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Sources list for WORLDCOM FINANCIAL RATIOS FRAUD:

Financial Ratios and Industry Averages. Retrieved from http://www.cbsc.org/alberta/tbl.cfm?fn=finratios Accessed on 22 April, 2005
Accounting Ratios

Horrigan, J. (1966). The Determination of Long-Term Credit Standing with Financial Ratios. Empirical Research in Accounting 1966, Journal of Accounting Research 4 (supplement): 44-62.
Sovereign Ratings

Financial Ratios and Quality Indicators. SBA Online Women's Business Center 18 Dec. 2004 . Financial Ratios and Quality Indicators. SBA Online Women's Business Center 18 Dec. 2004 <http://www.onlinewbc.gov/do es/finance/fs_ratio1.html.>.
Johnson and Johnson

Financial Ratio Analysis. 18 Dec. 2004 <htyp://www.finpipe.com/equity/finration.htm.>.
Johnson and Johnson

Federal Bureau of Investigation. "Financial Institute Fraud", http://www.fbi.gov, Oct. 22, 2001.
Fraud and Internal Controls in Banking

 


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