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Ratio Analysis : The word suggest that the proportion of one thing to other, Ratios are categorized in many category and each category has its own importance like
Profitability Ratio: This ratio can help to understand hows company's financial position.
Market related Ratios: This ratio help to understand how much investors are earning by investing in investment
Activity Ratio: This ratio help to understand is company able to mange its day to day activity efficiently like payment to debtors, conversion of inventory. operating cycle of the business.
1)Investors can take decision whether to invest in to the company or not
2) Some ratios help to make prediction about the future of company's financial health so that they can take decision whether to deal with company or not?
3) Creditors able to understand whether company will able to make future payment
4) bank able to measure is company able to pay credit in time
5) The management able to track the activities so that they take immediately steps to control
What else can I help you with?
What is the formula for calculating ratio analysis?
Ratio Analysis = Current Asset / Current Liabilities
What are the advantages of transactional analysis?
advantages and disadvantages of transactional technique
Uses of ratio analysis?
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.
Which one of the following is not a characteristic generally evaluated in ratio analysis profitablility marketability liquidity or sovency?
Marketability is a characteristic that is not generally evaluated in ratio analysis.
Is ratio analysis a form of horizontal analysis?
No, ratio analysis is not a form of horizontal analysis; they are distinct methods of financial analysis. Ratio analysis involves evaluating the relationships between different financial statement items, such as profitability, liquidity, and efficiency ratios. In contrast, horizontal analysis compares financial data over multiple periods to identify trends and growth patterns. Both methods provide valuable insights, but they focus on different aspects of financial performance.
What is ratio analysis and importance of ratio analysis in financial management?
what is ratio analysis
What are the scopes of financial ratio analysis?
scope of ratio analysis
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 advantages disadvantages of data warehousing?
Advantages of data warehousingOne consistent data store for reporting, forecasting, and analysisEasier and timely access to dataImproved end-user productivityImproved IS productivityReduced costsScalabilityFlexibilityReliabilityCompetitive advantageTrend analysis and detectionKey ratio indicator measurement and trackingDrill down analysisProblem monitoringExecutive analysis.
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?
What are the advantages of transactional analysis?
advantages and disadvantages of transactional technique
What are the advantages of strain rosette?
advantages of the strain rosette analysis
