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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 scopes of financial ratio analysis?

scope of ratio analysis


What Tools and techniques used in financial management?

cost of capital,financial leverage,capital budgeting appraisal methods,ABC analysis,ratio analysis and cash flow statements.


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 are the Benefits of financial ratio analysis?

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 is the meaning of ratio analysis types of ratio analysis importance of ratio analysis?

RATIO ANALYSIS Meaning and definition of ratio analysis: Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two variables. Significance or Importance of ratio analysis: • It helps in evaluating the firms performance: With the help of ratio analysis conclusion can be drawn regarding several aspects such as financial health, profitability and operational efficiency of the undertaking. Ratio points out the operating efficiency of the firm i.e. whether the management has utilized the firm's assets correctly, to increase the investor's wealth. It ensures a fair return to its owners and secures optimum utilization of firms assets •It helps in inter-firm comparison: Ratio analysis helps in inter-firm comparison by providing necessary data. An interfirm comparison indicates relative position.It provides the relevant data for the comparison of the performance of different departments. If comparison shows a variance, the possible reasons of variations may be identified and if results are negative, the action may be intiated immediately to bring them in line. •It simplifies financial statement: The information given in the basic financial statements serves no useful Purpose unless it s interrupted and analyzed in some comparable terms. The ratio analysis is one of the tools in the hands of those who want to know something more from the financial statements in the simplified manner.


What tools and techniques used in management Accounting?

The following tools and techniques are used in management accounting to assist management: (i) Analysis of Financial Statements. (ii) Ratio Analysis. (iii) Funds Flow Analysis. (iv) Cash Flow Analysis. (v) Cost Volume Profit Analysis, Different Cost Analysis, etc. (vi) Budgetary Control and Standard Costing. (vii) Management Reporting.


Management accounting ratio analysis along with ratio analysis formulas?

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


What is vm-vl ratio?

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.


What has the author J Edward Ketz written?

J. Edward Ketz has written: 'Hidden Financial Risk' 'A cross-industry analysis of financial ratios' -- subject(s): Corporations, Finance, Ratio analysis 'Management accounting' -- subject(s): Managerial accounting


Which financial ratio is the best measure of the operating effectiveness of a firms management?

current ratio


What statistical tools are used for financial research?

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