🔰 Methods of Expressing Accounting Ratios 🔰
1. Proportion Ratio: In this form, the relationship between the two items is directly expressed in proportion. For e.g. Current Ratio explains the relationship between Current Assets and Current Liabilities.
2. Times: In this form, the ratio is expressed in a number of times, a particular item in comparison to other items.
3. Percentage: In this form, the relationship between the two items is expressed in percentage. For e.g. Net Profit expresses the relationship between Net profit and Revenue from Operations.
1. Proportion Ratio: In this form, the relationship between the two items is directly expressed in proportion. For e.g. Current Ratio explains the relationship between Current Assets and Current Liabilities.
2. Times: In this form, the ratio is expressed in a number of times, a particular item in comparison to other items.
3. Percentage: In this form, the relationship between the two items is expressed in percentage. For e.g. Net Profit expresses the relationship between Net profit and Revenue from Operations.
📍Meaning of Ratio Analysis📍
➖ Analysis of financial statements with the help of ratio can be termed as ratio analysis.
➖ Examination and interpretation of the relationship between numerical figures.
📍Objectives of Ratio Analysis📍
➖ Provides analysis of profitability, liquidity and the solvency of the business.
➖ Traces the area which seeks more attention.
➖ Helps in making estimates.
➖ Supports in comparing the performance with best industry standards.
📍Advantages of Ratio Analysis📍
➖ Assists in comparative studies.
➖ Simplifies complex figures.
➖ Supports financial analysis.
➖ Helpful in forecasting.
➖ Helps in judging the operating efficiency of a business.
➖ Analysis of financial statements with the help of ratio can be termed as ratio analysis.
➖ Examination and interpretation of the relationship between numerical figures.
📍Objectives of Ratio Analysis📍
➖ Provides analysis of profitability, liquidity and the solvency of the business.
➖ Traces the area which seeks more attention.
➖ Helps in making estimates.
➖ Supports in comparing the performance with best industry standards.
📍Advantages of Ratio Analysis📍
➖ Assists in comparative studies.
➖ Simplifies complex figures.
➖ Supports financial analysis.
➖ Helpful in forecasting.
➖ Helps in judging the operating efficiency of a business.
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📣 Biggest Announcement for CA Aspirants 📣
Biggest Giveaway in History 🎁
Lucky students will win Exciting Rewards 🥳
🗓 31st Aug
🕕 6.00pm
Hurry Up !! Join the WhatsApp group for more updates ⬇️
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Biggest Giveaway in History 🎁
Lucky students will win Exciting Rewards 🥳
🗓 31st Aug
🕕 6.00pm
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Sometimes I feel..
Agar maine direct 11th me admission liya hota to meri zindagi ke 10 saal bach gye hote 😌
Agar maine direct 11th me admission liya hota to meri zindagi ke 10 saal bach gye hote 😌