Investing

Financial Ratio Analysis

Financial Ratio Analysis

Geetika Sharma asked: Financial Ratio Analysis also referred to as ‘Quantitative Analysis’ is considered to be the most important step while analyzing a company from an investment perspective. It is a study of ratios between various items in financial statements. Ratios are classified as profitability ratios, liquidity ratios, asset utilization ratios, leverage ratios and valuation ratios based on the indications they provide. Balance sheet, Income Statement and Cash Flow Statements are the most important financial statements and if properly analyzed and interpreted can provide valuable insights into a company’s business.Financial Ratios is commonly used by current and potential investors, creditors and More >