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What is meant by Ratio analysis
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Answer / anjali
ratio analysis is a technique of interpretation of financial
statement with the help of various meaningful ratios.
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Answer / babhu kanchupalli(dms)
Ratio stands for arthimatical expression of two variables.
Ratio analysis : It is a process of finding strengths and weaknesses of business firm by properly establishing the relationship between profit & loss account and balance sheet items i.e financial statements.
For example :
current ratio= Current assets/current ratios
It reflects the availability of current assets to meet it's current liabilities
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why net profit shown liabilities side in balance sheet
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