What is the purpose of ratio analysis-02338
This subjective question is related to the book/course
vu mth718 Topics in Numerical Methods.
It can also be found in
vu mth718 Mid Term Solved Past Paper No. 6.
Question 1: What is the purpose of ratio analysis?
Answer:
Purpose of Ration Anaysis
It help us to check either a business is doing better this year than previous years Also it tell us about our business is doing better and worse comparative to other businesses who doing business of same the same things. By using the ratio analysis we come to know our business is how much profitableMean to know business profit. Its purpose to know the money to pay its bills and we can even tell whether its shareholders should be happy.
