Explore BrainMass

Financial Analysis: Ratio Analysis

What are the standards for comparisons in financial analysis? Give an example of each.

© BrainMass Inc. brainmass.com July 16, 2018, 6:35 pm ad1c9bdddf

Solution Preview

Financial Analysis: Ratio Analysis

Ratio analysis is used for the comparison in financial analysis.
Ration 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:
Current ratio
This ratio establishes a relationship between current assets and current liabilities. In other words, it matches the ...

Solution Summary

This response addresses the queries posed in 339 Words, APA References.