# Tag: ratio analysis

Management Accounting

## Ratio analysis | Meaning | Ways of expressing ratios

What is Ratio Analysis? Ratio analysis is one of the tool or technique used for analysis of financial statements. Financial executives need certain yardstick to evaluate the financial position …
Management Accounting

Benefits or Advantages of Inter Firm or Intra Firm comparison Inter firm comparison has brings same benefits to every business unit. They are presented below: 1. The management can …
Management Accounting

## Inter firm & Intra firm Comparison | Requisites | Procedures

Requisites for inter-firm or intra-firm comparison The followings are the per-requirements for meaningful and effective inter firm or intra firm comparison. 1. Similarity of Firms or Departments Similarity means …
Management Accounting

## Guidelines or precautions while analyzing and interpreting ratios

The calculation of ratio is very easy. But, the interested party or analyst should be very cautious while analyzing and interpreting the ratios. The following guidelines or factors may …
Management Accounting

## Financial Ratio Analysis | Steps Involved | How to interpret?

Steps involved in financial ratio analysis The following are the steps involved in the financial ratio analysis. 1. An analyst should decide the objectives of ratio analysis. 2. Select …
Management Accounting

## Inter & Intra firm Comparison | Meaning | Definition | Need

Meaning of Inter-Firm Comparison Inter firm comparison means a comparison of two or more similar business units with the objective of finding the competitive position to improve the profitability …
Management Accounting

## List or Classification of ratios | Grouped | Contents

The ratios are classified on various basics. Such grouped ratios are presented below. Here the list or classification of various financial ratios are grouped under various topics. The contents …
Management Accounting

## Yardsticks for ratio analysis

An efficiency of an individual can be assessed only by fixing the standard. If not so, the concerned individual has no option of knowing his level of efficiency. Anybody …
Management Accounting

## Limitations of Ratio Analysis

Ratio analysis is treated as knife. If a knife is used by a doctor, he/she can save the life of human beings during the operation. At the same time, …