222

$show=home

Learn Accounting, with Ease!

Get access to high-quality courses for mastering Accounting skills.

Explore Courses

Ratio Analysis

Q:- What is meaning of ratio analysis ? What is the procedure of establishing the ratios ?

Ans. Definitions of Ratio and its analysis :-
It is an important technique for analyzing the financial statement . In this method we establish various ratios and give the results through interpretation .The relation in the ratio of items of f/s .
A ratio is simply a relationship of two items which are express in arithmetic number . It is arithmetical expression of relationship of one number to another .It may be indicated quotation of two mathematical expression .
According to Accountant hand books of wixen , kell and bed ford .
“ A ratio is an expression of the quantitative relationship between two numbers .”
“ A ratio is relationship of two out of item A to another item B . It is a simple fraction , integer or decimal or percentage .
In simple words ,” Ratio means one number expressed in terms of another and can be calculated by dividing one number into another .

Procedure

The following is the procedure for interpreting the result of financial analysis through ratio analysis .
1 Take the ratio to be calculate
2. Selection of item for the purpose of ratio from the financial statement
3. Calculation of Ratio
4. Comparison of calculated ratio
5. Interpretation of ratios


Connect with Us


Name

accounting,1,administration,1,approach,1,authority,1,business management,20,characteristics,1,company,1,control,2,employee,1,evaluate,1,feature,1,finance,2,level,1,management,11,management accounting,39,manager,2,MBA,27,MBA Jobs,1,MBA Achievement,1,MBA Admission,7,MBA Career,4,MBA Research,3,Money market,4,organisation,4,parts,1,planning,6,principle,1,profession,1,scope,1,University of Pennsylvania,1,
ltr
item
MBA FINANCE: Ratio Analysis
Ratio Analysis
MBA FINANCE
http://mbafinance.svtuition.org/2008/06/ratio-analysis.html
http://mbafinance.svtuition.org/
http://mbafinance.svtuition.org/
http://mbafinance.svtuition.org/2008/06/ratio-analysis.html
true
4874359708558047688
UTF-8
Loaded All Posts Not found any posts VIEW ALL Learn more Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENT FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy