IDEAS home Printed from https://ideas.repec.org/a/abk/jajeba/ajebasp.2011.618.622.html
   My bibliography  Save this article

Comparison between Financial Ratios Analysis and Balanced Scorecard

Author

Listed:
  • Khalad M.S. Alrafadi
  • Mazila Md-Yusuf

Abstract

Financial ratios have long been used as a tool to evaluate the overall financial performance of a company. However, in early 1990s, a new method called Balanced Scorecard has been introduced by Robert Kaplan and David Norton to evaluate the overall controlling of a company. Problem statement: To the best of my knowledge at present there are no letrature review comparing between Financial ratios and Balanced Scorecard. Approach: This study is a conceptual paper comparing between the financial ratios analysis and balanced scorecard method. The objective of this paper is to compare between the benefits and problems of using financial ratios analysis and Balanced Scorecard method in evaluating the overall control of the company. Results: As a result, we found that the Balanced Scorecard is more efficient than financial ratios analysis. Conclusion/Recommendations: Both the balanced scorecard and financial ratios analysis are important tools for evaluating performance. So, we cannot ignore either of them.

Suggested Citation

  • Khalad M.S. Alrafadi & Mazila Md-Yusuf, 2012. "Comparison between Financial Ratios Analysis and Balanced Scorecard," American Journal of Economics and Business Administration, Science Publications, vol. 3(4), pages 618-622, February.
    • Handle: RePEc:abk:jajeba:ajebasp.2011.618.622
    DOI: 10.3844/ajebasp.2011.618.622
    as

    Download full text from publisher

    File URL: https://thescipub.com/pdf/ajebasp.2011.618.622.pdf
    Download Restriction: no
    File URL: https://thescipub.com/abstract/ajebasp.2011.618.622
    Download Restriction: no
    File URL: https://libkey.io/10.3844/ajebasp.2011.618.622?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abk:jajeba:ajebasp.2011.618.622. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jeffery Daniels (email available below). General contact details of provider: https://thescipub.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.