Version 1
: Received: 23 November 2023 / Approved: 23 November 2023 / Online: 23 November 2023 (16:59:32 CET)
How to cite:
Seretidou, D.; Billios, D.; Stavropoulos, A. Integrative Analysis of Traditional and Cash Flow Financial Ratios: Insights from a Systematic Comparative Review. Preprints2023, 2023111548. https://doi.org/10.20944/preprints202311.1548.v1
Seretidou, D.; Billios, D.; Stavropoulos, A. Integrative Analysis of Traditional and Cash Flow Financial Ratios: Insights from a Systematic Comparative Review. Preprints 2023, 2023111548. https://doi.org/10.20944/preprints202311.1548.v1
Seretidou, D.; Billios, D.; Stavropoulos, A. Integrative Analysis of Traditional and Cash Flow Financial Ratios: Insights from a Systematic Comparative Review. Preprints2023, 2023111548. https://doi.org/10.20944/preprints202311.1548.v1
APA Style
Seretidou, D., Billios, D., & Stavropoulos, A. (2023). Integrative Analysis of Traditional and Cash Flow Financial Ratios: Insights from a Systematic Comparative Review. Preprints. https://doi.org/10.20944/preprints202311.1548.v1
Chicago/Turabian Style
Seretidou, D., Dimitris Billios and Antonios Stavropoulos. 2023 "Integrative Analysis of Traditional and Cash Flow Financial Ratios: Insights from a Systematic Comparative Review" Preprints. https://doi.org/10.20944/preprints202311.1548.v1
Abstract
In exploring the intricacies of financial analysis, this study delves into the efficacy of traditional financial ratios versus cash flow ratios in foreseeing a company's fiscal well-being. By harnessing the PRISMA 2020 framework, an exhaustive and systematic dissection of diverse scholarly articles was embarked upon. The quest was to unearth the more reliable predictor of financial stability among these two sets of ratios. With a methodical examination of academic writings, this inquiry juxtaposed various models, scrutinizing their foresight capabilities. The revelations were telling; cash flow ratios emerged as more potent forecasters compared to their traditional counterparts. Intriguingly, models that blend both ratio types showed a marked improvement in predictive accuracy, hinting at a synergistic effect. This underscores the insight that while traditional ratios are informative, their amalgamation with cash flow ratios yields a richer, more rounded grasp of a company’s fiscal state. Conclusively, for stakeholders, especially investors, adopting this dual-ratio approach is pivotal for enlightened decision-making. This research enriches the financial analysis domain by spotlighting the salience of cash flow ratios, advocating for their integration with conventional methods for a sharper financial health appraisal.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
