Week 5: Discussion 1 Ratio Analysis

Week 5: Discussion 1 Ratio Analysis

Introduction

Ratio analysis is one of the most important techniques to analyze the financial position of the company. Most of the financial analysts are of the view that ratio analysis is the best barometer toy understands that where the company is and where it is going. Ratio analysis is used for analyses of financial statements to get a quick signal of a company's financial performance in various key areas. They identify trends of a company over a period of time or can be used to compare two companies at a ...