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
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
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
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
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.
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
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
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.