Ratio Analysis



Ratio Analysis

Introduction

Ratio analyses are an integral and important part of the financial analyses of the company, because with the help of ratio analyses the company can effectively monitor the performance of the company, further, can compare it with the industry performances (Gibson, 2010).

Q1) Representation of Ratios

The calculation of each ratios represent the financial performance of the company during the fiscal years, in addition to these all these ratios provide management an opportunity to analyze the performance of the company in all respects of the business and can be effective in determining future policies (Gibson, 2010).

Further, by analyzing the performance ...