Ratio Analysis

ratio analysis Financial Ratios: What They MeanIn assessing the signifi hindquartersce of various pecuniary data, managers a good deal engage in ratio analysis, the process of find and evaluating fiscal ratios. A financial ratio is a family that indicates something more or less a companys activities, such as the ratio amongst the companys rate of flow assets and current liabilities or between its accounts receivable and its one-year sales. The rudimentary source for these ratios is the companys financial statements that contain figures on assets, liabilities, profits, and losses. Ratios be except meaningful when comp ared with other information.

Since they are often compare d with sedulousness data, ratios succor managers understand their companys performance relative to that of competitors and are often use to trace performance over time.Ratio analysis can lay wind much about a company and its operations. However, there are several points to keep in mind about ratios. First, a ratio is just one number divi...If you need to get a full essay, order it on our website: OrderEssay.net

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