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Ratio analysis is a useful management tool that will improve your understanding of financial results and trends over time, and used for comparison purposes. And provide key indicators of organizational performance. Managers will use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can be formed.
Ratio Analysis is used for assessing the financial health of the company. Performed by Lenders, Shareholders, potential investors,public,government (stakeholders).
In simple words, The financial analysis used to know the financial perfomance of the company such as pofitability, liquidity, etc.
This Ratio help us To Mesuring Business Position Wether We Are Liquidity,Profitable
Solvency
The financial ratio analysis is mainly used for three key aspects, liquidity, profitability, and solvency.
Financial ratio analysis used for efficiency, liquidity, profitablity and solvency.
evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability, and solvency.
Financial ratios are used to perform quantitayive analysis on a companys financial statement. it us used to compare the performance of an organisation with its previous or current positions. for example gross profit margin, current ratio, etc
the ratio reflects the relationship between 2 or more items in the financial statements .in general, any number in the financial statements can be assigned to another number to reach a meaningful meaning and is usually expressed as a percentage or number of times. financial ratios are among the most common analytical tools
Financial ratio analysis is used for showing the quality of management performance and showing its points of strenth and weakness
