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Steps in ratio analysis

Updated: 9/15/2023
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11y ago

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Steps in 'Ratio Analysis'

Step 1: Collection of information, which are relevant from the financial statements and then to calculate different ratios accordingly.

Step 2: Comparison of computed ratios with the past ratios of the same organisation or with the industry ratios.

Step 3: Interpretation, drawing of inferences and report-writing

Classification of Ratios

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