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Modern Indicators Of Measuring A Firm’S Competitivity

Author

Listed:
  • Laura Giurca Vasilescu

    (University of Craiova, Faculty of Economy and Business Administration)

  • Daniela Danciulescu

    (University of Craiova, Faculty of Economy and Business Administration)

Abstract

The traditional financial ratios reflect the historical performance of the companies, having a limited relevance in the forecasting of their future evolution. The modern financial ratios are based on the concept of value creation, having a high relevance on expressing the real financial performance of the firm. The main modern financial ratios used for the evaluation of the firms financial performances are: Market value added- MVA, Excess return, Economic value added-EVA, Return on Capital Invested–ROCI, Cash Flow Return on Investment–CFROI, Total Business Return–TBR, Total Shareholder Return - TRS.

Suggested Citation

  • Laura Giurca Vasilescu & Daniela Danciulescu, 2006. "Modern Indicators Of Measuring A Firm’S Competitivity," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(6), pages 14-19, April.
  • Handle: RePEc:aio:rteyej:v:1:y:2006:i:6:p:14-19
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    File URL: http://feaa.ucv.ro/RTE/006-02.pdf
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    References listed on IDEAS

    as
    1. Álmos & John S. Earle & Victor Kaznovsky & Csaba Kucsera, 2002. "Corporate Control: A Study of Firms on the Bucharest Stock Exchange," Eastern European Economics, Taylor & Francis Journals, vol. 40(3), pages 6-27, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial ratios; market value; profitability; capital; firm;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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