Ratio analysis
BBA-II
Sharda university
Analysis & interpretation of
financial statement
Analysis & interpretation of
financial statement
• analysis & interpretation of statement
help business owners & others in...
Financial analysis
• Assessment of the
firm’s past,
present and future
financial
performance.
Ratio
• Ratio:- a ratio is a simple
arithmetical expression of
relationship of one number to
another or,
• An expression o...
Ratio analysis
• Ratio analysis is a tool of financial
analysis, it is used as devices to
analyze & interpret the financia...
Use/significance of ratio analysis
• Helpful in analysis of financial
strength
• Helpful in decision-making
• Help in fina...
Types of Ratio
• 1. Liquidity ratio:- current ratio, liquid
ratio
• 2. Solvency ratio: debt equity ratio, assets
to debt r...
Upcoming SlideShare
Loading in …5
×

Ratio analysis by Neeraj Bhandari ( Surkhet.Nepal )

841 views

Published on

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
841
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
17
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Ratio analysis by Neeraj Bhandari ( Surkhet.Nepal )

  1. 1. Ratio analysis BBA-II Sharda university
  2. 2. Analysis & interpretation of financial statement
  3. 3. Analysis & interpretation of financial statement • analysis & interpretation of statement help business owners & others interested people to analyze the data with better information about such key factors for decision making & ultimate business survival
  4. 4. Financial analysis • Assessment of the firm’s past, present and future financial performance.
  5. 5. Ratio • Ratio:- a ratio is a simple arithmetical expression of relationship of one number to another or, • An expression of quantitative relationship between two numbers.
  6. 6. Ratio analysis • Ratio analysis is a tool of financial analysis, it is used as devices to analyze & interpret the financial health of enterprise. Ratio analysis means better understanding of financial strength & weakness of a firm.
  7. 7. Use/significance of ratio analysis • Helpful in analysis of financial strength • Helpful in decision-making • Help in financial forecasting • Help in financial planning
  8. 8. Types of Ratio • 1. Liquidity ratio:- current ratio, liquid ratio • 2. Solvency ratio: debt equity ratio, assets to debt ratio, proprietary ratio. • 3. Profitability ratio: gross profit ratio, net profit ratio, operating ratio, ROI • 4. Activity ratio: Inventory turnover ratio, debtors turnover ratio, creditors turnover ratio, working capital ratio

×