Earnings Before Tax / Earnings Before Interest and Tax
It provides a comparative measure of the cost of debt.
what is ratio analysis
gearing is where a company analyses its financial expenditure on its operations
Importance of financial ratio analysis on investment decision making?
it manages our financial cost and investment and also gives us profit ratio.
it mean the cost of sale sale of company increase or the direct cost increase
cost of capital,financial leverage,capital budgeting appraisal methods,ABC analysis,ratio analysis and cash flow statements.
How do i start answering this question?
scope of ratio analysis
Cost Ratio = expenses/earnings
One of the main benefits of financial ratio analysis is that it simplifies financial statements. Another advantage is that vital information is easily highlighted.
what are the importance of cost sheet?
COROLLARY: It is a necessary corollary to enable an adoption to take place. IMPORTANCE: The sequence of topic letters shows the relative importance of the topic. FINANCIAL: In some cases financial assistance may be available to offset the cost of the training. REPORTING: This measure forms the basis of our internal financial reporting and is used by management in deciding how to allocate capital resources among business segments.