I have prepared the ratios and the interpretations of the ratios. please add anything that is missing in the interpretation.
A) Compare Each companies previous performance and the next performance.
B) Make a comparison Between TekNoLowG ad TekNoFreek Limited financial statements for the year ended 31 December 2003 and decide which company you would invest in.
C) Also compare the companies results for the current and Acid Test ratios with the ideal ratios.
A ratio is nothing more than a simple division of two numbers. Often numbers by themselves do not convey anything until they are related. It needs a contextual reference.
In financial analysis, we need qualitative information and try to read between the numbers. We have to ask all the right ...
This provides guidance to compare the companies results for the current and Acid Test ratios with the ideal ratios