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The ratio analysis is useful for inter firm comparison which basically implies that a company compares its performance with that of its industry peers. Ratio analysis is very important in simplifying the accounting figures to make then understandable to a common man.

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11y ago

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What is ratio analysis and importance of ratio analysis in financial management?

what is ratio analysis


What is the difference between trend analysis and financial ratio analysis?

Trend analysis usually measures monetary changes that fall into a certain period of time line-by-line in finances. Ratio analysis uses math to figure out percentages or indicators from ratios in finances.


What are the scopes of financial ratio analysis?

scope of ratio analysis


What is the analysis that uses the percent of fixed assets to total assets?

The analysis that uses the percent of fixed assets to total assets is called the fixed asset turnover ratio. It helps measure a company's ability to generate revenue from its fixed assets, such as property, plant, and equipment. A higher ratio indicates better utilization of fixed assets, while a lower ratio suggests inefficiency in utilizing these assets.


What is the formulae for ratio analysis?

Ratio Analysis = Current Asset / Current Liabilities


What is the formula for calculating ratio analysis?

Ratio Analysis = Current Asset / Current Liabilities


Management accounting ratio analysis along with ratio analysis formulas?

How dose the cost income ratio is calculated in the banking model?


What are the advantage and disadvantages business ratio?

ratio analysis


What ratio or other financial statement analysis technique will you adopt for analysis of liquidity of a firm?

What ratio or other financial statement analysis technique will you adopt for this.


What statistical tools are used for financial research?

1.Commansize Balence sheet analysis 2.Comparative Balence sheet analysis 3.Trend analysis 4.Ratio Analysis


What is the Value of ratio analysis to the strategic decision making of an organization?

Importance of financial ratio analysis on investment decision making?


types of ratio analysis?

generally, there are five types of ratio analysis which are done by companies. they are:a) Profitability analysisb) Liquidity analysisc) Solvency analysisd) Asset efficiency analysise) Market value analysis