Performance Ratios for Managerial Decision-Making in a Growing Firm (Report‪)‬

1. Introduction This paper focuses on the dependence of financial and non-financial performance ratios and measures on firm growth. The study tests the hypothesis that variations in growth rates are associated with differences in the values of financial and non-financial ratios. The research objectives are to analyse the impact of growth rates on performance ratios and measures and to determine whether financial and non-financial ratios and measures could provide managers additional relevant information for making business decisions, when the impact of growth rates on performance ratios is known. In other words, the hypotheses are that target values of performance ratios change with regard to the growth rate of a firm (i.e., performance ratios of fast-growing firms are significantly different from those of slow-growing firms), and that target values of performance ratios could also be typical.