i wany d introduction of d topic
Importance of financial ratio analysis on investment decision making?
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.
what is ratio analysis
The purpose of ratio analysis is to evaluate a company's financial performance and stability by examining relationships between various financial statement items. It helps investors, analysts, and management assess profitability, liquidity, efficiency, and solvency, enabling informed decision-making. By comparing these ratios over time or against industry benchmarks, stakeholders can identify trends, strengths, and weaknesses in the company's financial health. Ultimately, ratio analysis aids in making strategic business decisions and forecasting future performance.
scope of ratio analysis
Ratio Analysis = Current Asset / Current Liabilities
Ratio Analysis = Current Asset / Current Liabilities
How dose the cost income ratio is calculated in the banking model?
ratio analysis
What ratio or other financial statement analysis technique will you adopt for this.
1.Commansize Balence sheet analysis 2.Comparative Balence sheet analysis 3.Trend analysis 4.Ratio Analysis
The VM-VL ratio, or Value Management to Value Loss ratio, is a financial metric used to assess the effectiveness of value management practices in an organization. It compares the value created through effective management strategies (VM) to the value lost due to inefficiencies or failures (VL). A higher ratio indicates better performance and efficiency in preserving or enhancing value, while a lower ratio suggests potential areas for improvement. This ratio is often utilized in project management and financial analysis to evaluate decision-making processes.