What are the standards for comparisons in financial analysis? Give an example of each.
Financial Analysis: Ratio Analysis
Ratio analysis is used for the comparison in financial analysis.
Ratio analysis is an important technique of financial analysis. It is the process of determining and interpreting numerical relationship between figures of the financial statements. Absolute figures are valuable but they standing alone and convey the meaning unless compared with other. Some of the important ratios are:
This ratio establishes a relationship between current assets and current liabilities. In other words, it matches the ...
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