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ratio analysis

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ratio analysis

Comparison of data to examine the performance of a company. Ratios can be used to analyse financial information such as indebtedness, stock performance, and profitability. Ratios can be measured against industry benchmarks to compare a company's performance relative to other firms in its market.



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By relating the amount of cash and other current assets to the current obligations, ratio analysis provides a quick and easy-to-use measure of liquidity.
This article presents the practicality of ratio analysis for this group of non-profit organizations.
Ratio analysis Finally, ratio analysis allows the interested accountant to explore meaningful relationships between components of a single financial statement or between different statements.
 
 
 
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