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متابعة

What is the purpose of ratio analysis?

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تم إضافة السؤال من قبل Fahd Mohammed Suleman , CFO , Tajeel Business Commercial Services
تاريخ النشر: 2014/07/14
Tamer Ahmed Sayed
من قبل Tamer Ahmed Sayed ,  Accountant , The Egyptian Foundation for Small and Medium Enterprises

Summarize a large amount of accounting and financial information in order to compare the performance of companies

In general, it can attribute any number in the financial statements to another number to reach a meaningful indication, usually expressed as a percentage or a number of times

 

Financial ratios are characterized by being able analyst to overcome the so-called problem of scale in financial and accounting literature. The problem arises when comparing the size of accounting figures

and financial indicators for companies between which there is great variation in size market value

 

 

 

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