Tag Archives | Ratio Analysis

Ratio Analysis: Mode, Types, Examples, Steps, Financial Statements, Advantages and Limitations

In this article we will discuss about:- 1. Introduction to Ratio Analysis 2. Modes of Expression of Ratios 3. Steps in Ratio Analysis 4. Classification 5. Rearrangement of Financial Statements 6. Advantages 7. Limitations. Ratio Analysis: Mode, Types, Examples, Steps, Financial Statements, Advantages and Limitations Introduction to Ratio Analysis: Analysis and interpretation of financial statements with the help of 'ratios' [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Ratio Analysis|Comments Off on Ratio Analysis: Mode, Types, Examples, Steps, Financial Statements, Advantages and Limitations
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List of Ratio Analysis Formulas and Explanations | Accounting

List of Ratio Analysis Formulas and Explanations! Profitability Ratios: Profit making is the main objective of business. Aim of every business concern is to earn maximum profits in absolute terms and also in relative terms i.e., profit is to be maximum in terms of risk undertaken and capital employed. Ability to make maximum profit from optimum utilisation of resources by [...]

By |2018-06-18T11:02:00+00:00June 7, 2018|Ratio Analysis|Comments Off on List of Ratio Analysis Formulas and Explanations | Accounting
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Limitations of Ratio Analysis | Accounting

Some of the limitations of the ratio analysis are:- 1. Differences in Definitions 2. Limitations of Accounting Records 3. Lack of Proper Standards 4. No Allowances for Price Level Changes 5. Changes in Accounting Procedure 6. Qualitative Factors are Ignored 7. Limited Use of Single Ratio 8. Background is Overlooked 9. Limited Use 10. Personal Bias 11. Arithmetical Window Dressing [...]

By |2017-02-06T20:58:56+00:00February 6, 2017|Ratio Analysis|Comments Off on Limitations of Ratio Analysis | Accounting
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