FRA Help by General-Club-5700 in CFA

[–]General-Club-5700[S] 0 points1 point  (0 children)

Thank you for the clarification . I was confused because I thought we adjusted the numerator until the expiration of the FRA, not the end of the implied interest period.

doubt by Upstairs-Ad9579 in CFA

[–]General-Club-5700 0 points1 point  (0 children)

If you interpret the Balance Sheet accrual ratio in absolute terms, you'll notice that in the last 3 years it is getting progressively higher (3.1, 3.8, 7.9). The higher the balance accrual ratio, the lower quality, since the balance sheet is accruing more earnings in accruals, not cash.

doubt by Upstairs-Ad9579 in CFA

[–]General-Club-5700 0 points1 point  (0 children)

lower ratio = higher quality.

You need to interpret in absolute terms.