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Ratio Analysis


Ratio analysis is a commonly used tool of financial statement analysis. Ratio is a mathematical
relationship between one number to another number. Ratio is used as an index for
evaluating the financial performance of the business concern.

Ratio Analysis
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An accounting ratio shows the mathematical relationship between two figures, which have meaningful relation with each other. Ratio can be classified into various types. Classification from the point of view of financial management is as follows:

● Liquidity Ratio

● Activity Ratio

● Solvency Ratio

● Profitability Ratio
Ratio Analysis Ratio Analysis Reviewed by Blog Editor on Friday, February 24, 2017 Rating: 5

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