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Financial Analytics: Science and Experience
 

Significant financial ratios to assess the company's financial policy effectiveness

Vol. 14, Iss. 3, SEPTEMBER 2021

Received: 13 May 2021

Received in revised form: 2 June 2021

Accepted: 20 June 2021

Available online: 16 August 2021

Subject Heading: FINANCIAL INSTRUMENTS

JEL Classification: G03, G32, M21

Pages: 347–360

https://doi.org/10.24891/fa.14.3.347

Kirill E. PIVNYK Plekhanov Russian University of Economics (PRUE), Moscow, Russian Federation
kirillpivnyk@gmail.com

ORCID id: not available

Subject. This article fixates on the financial ratios used to assess the financial policies of companies.
Objectives. The article aims to form a base group of financial ratios enabling to measure the effectiveness of company's financial policy implementation.
Methods. For the study, I used a correlation analysis, critical review of subject-matter literature, and the systems approach.
Results. The article presents a set of financial ratios that can be used to assess the effectiveness of financial policy implemented by companies.
Conclusions and Relevance. Taken in totality, the described financial ratios can serve as an objective information basis to assess the effectiveness of companies' financial policies. The findings can be useful for company management to evaluate the financial policy, for investors to choose the best investment option, and for financial market participants.

Keywords: company, financial policy, financial ratios, performance evaluation, analysis

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