Using Operational Breakeven Point and Relative Solvency Ratio as Discriminant Tools to Highlight Firms’ Corporate Survival Index | Chapter 7 | Current Topics on Business, Economics and Finance Vol. 9

 Corporate monetary management example need to change because the current technologies have again and again shown clues of being unable to efficiently handle solvency issues. The relative financial competence ratio, an offshoot of the functional breakeven point, measures the solvency or liquidity rank of a business in conditions of the availability of working capital. The main moving power behind the operational breakeven point mix up-up ratio(m) that maintains a trade-off connection with the old; meaning the greater the mark-up rate, the lower the operational breakeven point and with the order reversed. As a more useful substitute for the current tools for discriminant analysis and allied financial administration, the operational breakeven theory was bestowed. The theory has sustained extensive experiment with positive results in Asia and Africa.

Author(s) Details:

Enyi Patrick Enyi
Babcock University, Ilishan-Remo, Nigeria.

Please see the link here: https://stm.bookpi.org/CTBEF-V9/article/view/11460