The use of ratios in financial analysis: How retail management can help

Abstract

In his approach to the performance of retail companies, the financial analyst uses a number of operating ratios — net profit to sales, return on capital employed, sales per £ of payroll, sales and profits per store, and others. How meaningful are these ratios? And if they give a fair picture of present performance, what indications do they offer for the future? Colin Paterson, speaking at a Capel‐Cure conference, argues that close contact between the analyst and retail management is essential.

Citation

Paterson, C. (1974), "The use of ratios in financial analysis: How retail management can help", Retail and Distribution Management, Vol. 2 No. 2, pp. 19-21. https://doi.org/10.1108/eb017777