Tag Archives | Ratio Analysis

Ratio Analysis: Mode, Types, Examples, Steps, Financial Statements, Advantages and Limitations

In this article we will discuss about:- 1. Introduction to Ratio Analysis 2. Modes of Expression of Ratios 3. Steps in Ratio Analysis 4. Classification 5. Rearrangement of Financial Statements 6. Advantages 7. Limitations. Ratio Analysis: Mode, Types, Examples, Steps, Financial Statements, Advantages and Limitations Introduction to Ratio Analysis: Analysis and interpretation of financial statements with the help of 'ratios' [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Ratio Analysis|Comments Off on Ratio Analysis: Mode, Types, Examples, Steps, Financial Statements, Advantages and Limitations

List of Ratio Analysis Formulas and Explanations | Accounting

List of Ratio Analysis Formulas and Explanations! Profitability Ratios: Profit making is the main objective of business. Aim of every business concern is to earn maximum profits in absolute terms and also in relative terms i.e., profit is to be maximum in terms of risk undertaken and capital employed. Ability to make maximum profit from optimum utilisation of resources by [...]

By |2018-06-18T11:02:00+00:00June 7, 2018|Ratio Analysis|Comments Off on List of Ratio Analysis Formulas and Explanations | Accounting

Importance of Ratio Analysis | Accounting

The importance of ratio analysis are:-  1. Aid to Measure General Efficiency 2. Aid to Measure Financial Solvency  4. Facilitate Decision-Making 5. Aid in Corrective Action 6. Aid in Intra Firm Comparison 7. Act as a Good Communication 8. Evaluation of Efficiency 9. Effective Tool 10. Detection of Unfavourable Factors.   1. Aid to Measure General Efficiency: Ratios enable the mass [...]

By |2017-02-06T20:58:56+00:00February 6, 2017|Ratio Analysis|Comments Off on Importance of Ratio Analysis | Accounting
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