Sample Thesis Paper
As the name suggests, performance ratios basically give an indication of the performance of the company and the management in that company for a selected period. The performance ratios use differing items from both the balance sheet and income statement and explain performance regarding those items. Examples include the efficiency of a company in deploying its resources to generate sales and also the efficiency of employees in creating sales. The most used performance ratios are the Fixed Asset Turnover and the Sales per Employee Ratio (Fields 2002). In a research carried out for evaluating performance benchmarks in banks Ho & Wu (2006) suggested that
‘The evaluation of operational performance has always been a major concern for industries, governments and academe. Operational performance not only serves as a basis for organizational improvement and criteria for detecting problems in enterprises, but also as a policy determinant for governments in mapping out relevant measures’ (p. 425-434).