Ratio Analysis

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

Since they a re often compared with sedulousness data, ratios help managers understand their companys performance relative to that of competitors and are often utilise to trace performance over time.Ratio analysis can peril 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 bulge out a full essay, order it on our website: OrderEssay.net

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