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Financial ratios of all company's can be calculated based on their financial statements that would be declared during their quarterly result announcement. Balance Sheet, Income Statement, Statement of Cashflows, Statement of Earnings etc are some of the documents from which the information required for calculating these financial ratios can be picked up. Also, if the company is listed in the Stock Market, its current stock price too is used for calculating some of these ratios.
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In financial analysis why does the analyst compute financial ratios rather than simply studying raw financial data?
In financial analysis the analyst compute financial ratios to determine the financial health of an financial institutoin rather than simply studying raw financial data.
Various authors definition for ratio analysis?
Ratio analysis is a method which takes financial data and converts it into ratios for comparison. The data is available and calculating ratios can be accomplished with public financial statements. Calculations provide helpful for decision-making.
Internal and external sources of an organization?
external sources include:- communication media supplier customer feed back banks financial instutation internal sources include:- financial report sales data transport data storage data
Critical data sources you would use to measure the financial outcomes?
To implement changes in an new organization, what are the critical data sources you would use to measure the financial outcomes?
Describe the four approaches to using financial ratios?
Describe the four approaches to using financial ratios?
What are the key determinants of a financial structure?
financial ratios
Explain the reasons for using ratios as a means of explaining accounting information?
Ratios are used in accounting to provide a comparative analysis of financial data. They allow for easy interpretation and comparison of numbers across different time periods or between companies. Ratios also help identify trends, assess financial health, and identify areas of strength or weakness within a company. Overall, ratios provide a simplified way of conveying complex financial information.
How many financial ratios are there?
25
What is composite ratios?
composite ratios are those which are compared between atleast two financial statements .
What value do financial ratios offer investors in reviewing financial performance of a firm?
Investors look at financial ratios to understand how businesses are performing. They use this information to determine whether they would like to invest or not.
What value do financial ratios offer investors in reviewing the financial performance of a firm?
Investors look at financial ratios to understand how businesses are performing. They use this information to determine whether they would like to invest or not.
Is not part of an external audit?
Analyzing financial ratios
