Financial Ratio Analysis
Financial ratio analysis is conducted to learn more about the accounts and businesses. Ratio analysis is useful in ascertaining the profitability of a company. It is useful in ascertaining the profitability of a company. The ability of a company to repay the liabilities is also determined from analyzing its financial ratio. Moreover, the working performance of the company is looked to check whether it has performed well in the current year as compared to the previous year. Comparison between the performances of different competitors is made through their financial ratio analysis.