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what is some information about ratio analysis ?

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

what is ratio analysis


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 are the scopes of financial ratio analysis?

scope of ratio analysis


what is the formula for calculating ratio analysis?

ratio analysis = current asset / current liabilities


what are some financial statement analysis tools?

1.commansize balence sheet analysis 2.comparative balence sheet analysis 3.trend analysis 4.ratio analysis


what are the merits and demerits of ratio analysis?

financial ratio analysis is a useful tool for users of financial statement. it has following advantages:advantagesit simplifies the financial statements.it helps in comparing companies of different size with each other.it helps in trend analysis which involves comparing a single company over a period.it highlights important information in simple form quickly. a user can judge a company by just looking at few numbers instead of reading the whole financial statements.limitationsdespite usefulness, financial ratio analysis has some disadvantages. some key demerits of financial ratio analysis are: different companies operate in different industries each having different environmental conditions such as regulation, market structure, etc. such factors are so significant that a comparison of two companies from different industries might be misleading.financial accounting information is affected by estimates and assumptions. accounting standards allow different accounting policies, which impairs comparability and hence ratio analysis is less useful in such situations.ratio analysis explains relationships between past information while users are more concerned about current and future information.


management accounting ratio analysis along with ratio analysis formulas?

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


importance of ratio analysis?

importance of ratios 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 is the value of ratio analysis to the strategic decision making of an organization?

importance of financial ratio analysis on investment decision making?


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.


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.


how does trend analysis compliment ratio analysis?

ratio analysis shows how a company performed at a given time. trend analysis shows how a company performed over time and whether the company has done better, worse, or stayed the same.


disadvantages of ratio analysis?

one disadvantage of ration analysis is the analysis is limited to numbers. another disadvantage to ration analysis is the fact that the numbers can be manipulated.


what is liquidity 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...measure of a firms ability to meet short term cash payments. bassically liquidity ratios show how good a business is at paying off its debts. hope this helps :)liquidity ratios include current ratio (which is current assets/current liabilities) and acid test (which is current assets- stock/current liabilities.) liquidity ratio's shows how good a business is...


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 some factors that should managers take into consideration when using financial ratio analysis to make decisions?

jake derbyshire.


briefly discuss the primary limitations of ratio analysis as a technique of financial statement analysis?

discuss objective and limitation of time series analysis


nature of ratio analysis?

(1) would like to know more about the following question " nature of ratio analysis" i would be glad to get a better and reasonable answers for that. question 2. (2) effect of inflation on ratio analysis. question 3. ratios as measure of performance. question 4. performance indicators.


what are some of the problems with ratio analysis?

there are many limitations, or "problems" with ratio analysis.ratio analysis only gives a numeric result of a formula, but it does not tell you why a result is gained. to be useful, the result therefore needs to be further analysed.anyone can plug numbers into a formula, but the figures need to be related to the actual scenario/organisation in question to find out why a result is such as it is.a further problem with ratio analysis is that different people/organisations can use different basis upon which to build a result. for example, "how profitable is my company?" .... we can calculate operational profit, net profit, gross profit and get very different answers, but still be talking about profitability.ratio analysis is also subject to potential manipulation to make a result "look better".


ratio analysis in detail?

how do i calculate the slepper / dinner ration ?


what is ratio analysis?

ratio analysis is a comparison of numbers. it is used in financial studies as well as math classes across the country. it is tough to figure out in the beginning, but one you get the hang of it, they will be easy to decipher.


what does genotypic ratio mean?

genotypic ratio refers to the frequency of genetic information in a dna. this genetic information is expressed using a ratio.


who uses financial ratio analysis information?

banks, lenders and people (buyers) who want to purchase the specific business. managers who want to improve or sustain the business performance