THE ANALYSIS OF THEORETICAL APPROACHES FOR CALCULATING VARIOUS FINANCIAL RATIOS

Nowadays the methods of financial analysis are widely used to estimate a company's financial position and operating results. Studying scientific literature of the theoretical guidelines for the financial analysis we can find different approaches. The aim of the research is to study methods of various financial ratios calculations and basing on the empirical research findings to develop the recommendations for improvement the methods for it. The author of this paper is studying theoretically different scientist's findings for using book value or average value of balance sheet analyzing such important ratios as turnover of companies. For the empirical research the data from annual statements of Latvian companies of manufacturing and trade branches are used. In the research the author has applied quantitative and qualitative methods of economics such as the mathematical and the statistical methods, the ratio analysis, the graphical method, the logically - constructive methods. At the end of the research the author summarizes the general conclusions and findings.