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Ratio Analysis

1. Introduction to Ratio Analysis Ratio analysis is a widely used tool of financial analysis. It is defined as the systemic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm, as well as its historical performance and current financial condition, can be determined. Ratios make the related […]

Ratios: Classification and Computation

In this article we will discuss about the classification and computation of ratios. Classification of Ratios: Ratios may be classified from various stand points and they are: (A) Classification by Statements: This classification is based on those statements from which information’s are obtained for calculating ratios since accounting information’s are obtained mostly from two statements […]

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