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what is a ratio analysis? please explain me the differnet
kinds of ratios in detail?
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Answer Posted / p.haritha
Ratio analysis is a powerful tool of financial analysis.A ratio is defined as "the indicated quotient mathematical expressions" and as "the relationship between two or more things". in financial analysis a ratio is used as a benchmark for evaluating the financial position and performance of a firm. there are 4 types of ratios they are:
1.Lequidity ratio
2.Levarage ratio
3.Activity ratio
4.Profitability ratio
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