EGYPTIAN CONSTRUCTION INDUSTRY NORMS AS INDICATORS FOR BUSINESS PERFORMANCE

Abstract

Financial Ratios Analysis in construction industry represents an important research area since it indicates the level of the Business success. The constmction industry has several tmique characteristics that sharply distinguish it from other sectors of the economy. These characteristics contribute in many ways to the high rate of business failure that features construction industry. Analysis of major financial ratios of a company is one method to help decision makers take early actions to prevent failure. However, financial models developed for analyzing the company's performance in manufacturing industry are not appropriate for construction industry. This study developed a deductive model based on the financial ratios to assess the fmancial performance identify problems and assess the chances of business survival. In addition, the Egyptian Constmction Industry Norms has been established to be considered as Benchmarks for the Egyptian constmction companies performance.