Ratio Analysis can become financial microscope to examine financial health, performance, and efficiency of any business organization.
Posts tagged as “Ratio Analysis”
In order to ensure that business managers have the complete picture of a firm, considering other qualitative factors is a must-to-do job.
Internal Users and External Users of Final Accounts will find Ratio Analysis of great help when making business decisions.
Each stakeholder group will want to know different information about a business, therefore will analyze Final Accounts differently.
Different types of ratios are used to analyze information from Profit and Loss Account (P&L Account) and Balance Sheet to judge financial performance.
Ratio Analysis helps to compare business performance using historical comparisons and using current comparisons between different companies.
Ratio Analysis is a quantitative management tool used for analyzing the financial performance of a business organization.
All business organizations need accounting systems. This makes finance one of four core business functions.