Ratio Analysis
Ratio analysis is a powerful tool used by businesses to evaluate their financial performance. It involves calculating and interpreting various ratios derived from the company's financial statements. These ratios provide valuable insights into different aspects of a company's operations, such as profitability, liquidity, and efficiency.
By analyzing ratios, businesses can identify trends, compare performance against industry benchmarks, and make informed decisions to improve their financial health. Common ratios used in ratio analysis include the liquidity ratio, profitability ratio, and efficiency ratio.
Overall, ratio analysis is an essential technique for assessing a company's financial health and performance. It helps businesses track progress, identify areas for improvement, and make strategic decisions to drive growth and success.
Ratio analysis is a powerful tool used by businesses to evaluate their financial performance. It involves calculating and interpreting various ratios derived from the company's financial statements. These ratios provide valuable insights into different aspects of a company's operations, such as profitability, liquidity, and efficiency.
By analyzing ratios, businesses can identify trends, compare performance against industry benchmarks, and make informed decisions to improve their financial health. Common ratios used in ratio analysis include the liquidity ratio, profitability ratio, and efficiency ratio.
Overall, ratio analysis is an essential technique for assessing a company's financial health and performance. It helps businesses track progress, identify areas for improvement, and make strategic decisions to drive growth and success.
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