Accounting Ratios

Accounting Ratios

Accounting Ratios: Accounting ratios are a group of metrics used to measure the efficiency and profitability of a company based on its financial reports. An accounting ratio compares two line items in a company’s financial statements that are made up of its income statement, balance sheet, and cash flow statement.

Financial Ratio Analysis

Financial Ratio Analysis

Financial Ratio Analysis: Financial Ratio Analysis involves evaluating a company’s financial performance using key ratios like liquidity, profitability, and solvency ratios. This analysis helps stakeholders understand the company’s financial health, identify trends, and make informed decisions. It is a critical tool for investors, managers, and analysts.