WHAT IS THE USE OF RATIO ANALYSIS
Answers were Sorted based on User's Feedback
Answer / ritika moitra
Ratio analysis is the calculation and comparison of ratios
which are derived from the information in a company's
financial statements.These ratios can be used to make
inferences about a company's financial condition, its
operations and attractiveness as an investment.Ex-Liquidity
ratio,Leverage ratio,Profitability ratio etc.It helps us to
make comparison and have a look of company's Financial
position.
Is This Answer Correct ? | 71 Yes | 2 No |
Answer / sudarshan
ratio analysis is analytical tool to measure the
performance of the org.
Is This Answer Correct ? | 30 Yes | 3 No |
Answer / vijaya kumar
Ratios are used to view the financial and efficiency
position of a firm and to draw a manangement decision.
Is This Answer Correct ? | 25 Yes | 3 No |
Answer / gopi sharma
Ratio analysis is the measuring tool in the hand of
financial anlayst to measure the financial health,
sustainability, for the investors to buy/sell shares for
the bankers to finance the companies/non-corporate assessee
Is This Answer Correct ? | 16 Yes | 3 No |
Answer / rameeza
Ratio analysis are useful indicators of a firm's performance
and financial situation .They can predict future bankruptcy.
Is This Answer Correct ? | 12 Yes | 1 No |
Answer / priyanka kondlekar
An integral aspect of fundamental analysis involves
performing what many would call “ratio analysis”. This
involves calculating a number of different industry
standard ratios and comparing them to various benchmarks.
The benchmarks can be the ratios of other competitors,
industry average ratios, or industry “rules-of-thumb”.
There’s no set procedure for performing ratio analysis
because it all depends on the type of company you’re
analyzing – certain industries have industry specific
ratios. Ratio analysis works best as a supplement to other
stock analyses.
Is This Answer Correct ? | 9 Yes | 1 No |
Answer / kkrao1983
hi, this is koteswara rao from hyd.
To be using ration analysis, we will find the relation ship
between the two companies financials positions. And also,
we assume future business with the help of ratio analysis.
Is This Answer Correct ? | 32 Yes | 25 No |
Answer / guest
ratio analysis is the inter-relation between the two
accounting figures.
current Assets ¤t Liabilities.
Is This Answer Correct ? | 7 Yes | 1 No |
Answer / tushar gawas
it determines type of system,it also determines input &
output handling capacity of system.
Is This Answer Correct ? | 9 Yes | 4 No |
Answer / ng
With the help of profitability and liquidity ratios, the
financial status of a company can be compared with that of
industry. These ratios are also significant in predicting
the bankruptcy of the firm in near future.
Is This Answer Correct ? | 4 Yes | 0 No |
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the primary purpose of compliance test is to verify whether?
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7. Sarbanes-Oxley requires auditors of public companies to maintain audit documentation for what period of time? A) Not less than 3 years. B) Not less than 5 years. C) Not less than 7 years. D) Through the issuance of the financial statements.
State with reason which account should be debited and which account should be credited in each of the following transactions: 1. Raj commenced business with cash Rs. 5000 2. Bought goods from Kiran for cash Rs. 1000 3. Sold furniture to Ravi on credit Rs. 500 4. Sold goods for cash Rs. 800 5. cash purchases Rs. 600 6. Bought Stamps Rs. 10 7. Withdrew cash from the business for personal use Rs. 1000 8. Paid salary to manager Rs. 500 9. Paid rent to landlord Rs. 200 10. Received commission from Mani Rs. 50 11. Paid for repairing machinery Rs. 30 12. Received cash form Ravi on account Rs. 400 13. Gave loan to Babu Rs. 500 14. Purchased goods from Sachin Rs. 400 15. Opened a bank account with Rs. 1000 16. Charged Mohan Rs. 50 commission for service rendered to him 17. Santosh paid the interest on loan advanced to him 18. Received loan from Manju Rs.10000 19. Office furniture stolen Rs. 500 20. Paid income tax Rs. 5000 21. Paid life insurance premium Rs. 300 22. Allowed discount to Babu Rs. 90 23. Discount received from Santosh Rs. 150 24. Amount charged by bank as bank charges Rs. 30 25. Railway fright paid on machinery purchased Rs. 100
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