What is Ratio Analysis ?
Ratio analysis is one of the oldest methods of financial statements analysis. It was developed by banks and other lenders to help them chose amongst competing companies asking for their credit. Two sets of financial statements can be difficult to compare. The effect of time, of being in different industries and having different styles of conducting business can make it almost impossible to come up with a conclusion as to which company is a better investment. Ratio analysis helps creditors solve these issues. Here is how:
What are Financial Ratios ?
Sources of Data
Here is where the investors get the data they require for ratio analysis:
MSG Video - Introduction to Ratio Analysis
- Techniques Used in Ratio Analysis
- Different Users of Ratio Analysis
- Limitations of Ratio Analysis
- Capital Structure Ratio
- Current Ratio
Authorship/Referencing - About the Author(s)
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