{"id":31521,"date":"2015-05-24T04:48:30","date_gmt":"2015-05-24T04:48:30","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=31521"},"modified":"2024-04-03T13:22:55","modified_gmt":"2024-04-03T07:52:55","slug":"ratio-analysis","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/","title":{"rendered":"RATIO ANALYSIS"},"content":{"rendered":"<p style=\"text-align: center\"><a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-32116\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg\" alt=\"RATIO ANALYSIS\" width=\"259\" height=\"194\" \/><\/a><\/p>\n<p><em>The primary uses of financial statements are evaluating past performance and predicting future performance and both \u00a0of these are facilitated by comparison.Therefore the focus of financial analysis is always on the crucial information contained in the financial statement.This depends on the objectives and purpose of such analysis<\/em><\/p>\n<p><em>The purpose of evaluating such financial statements is different from person to person depending on its relationship.In other words even though the business unit itself and shareholders, debenture holders, investors \u00a0 \u00a0etc. all undertakes the financial analysis , the purpose,means and the extent of such analysis differs.<\/em><\/p>\n<p><em>For example , the trade creditors may be interested primarily in the liquidity of a firm because the \u00a0ability of the firm to pay their claims are best judged by means of a thorough analysis of its liquidity.<\/em><\/p>\n<p><em>The financial analysis always need certain yardsticks to evaluate the efficiency and performance of any business unit.The one of the most used tool is Ratio Analysis.Ratio analysis involves the use of various methods for calculating and interpreting financial ratios to access the performance and status of the business unit.<\/em><\/p>\n<p><em>However,it must be noted that ratio analysis merely highlights the potential areas of concern or areas needing immediate attention but it does not come out with the conclusion as regards \u00a0causes of such deviations from the norm.<\/em><\/p>\n<p><em>Ratio analysis is the systematic process of determining and interpreting the numerical relationship of various pairs of the items derived from the financial statements of a business.<\/em><\/p>\n<p><em>Ratios are considered as one of the useful aids available to \u00a0the management in assessing the position and drawing conclusions regarding operational efficiency and financial status of business .But a ratio is only an aid and should be used in conclusion with other information.Again, a single ratio may present a picture leading to wrong conclusion.\u00a0<\/em><\/p>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/accounting-banking-and-finance\">Click here for government certification in Accounting, Banking &amp; Finance<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The primary uses of financial statements are evaluating past performance and predicting future performance and both \u00a0of these are facilitated by comparison.Therefore the focus of financial analysis is always on the crucial information contained in the financial statement.This depends on the objectives and purpose of such analysis The purpose of evaluating such financial statements is&#8230;<\/p>\n","protected":false},"author":1241,"featured_media":32116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1519],"tags":[2479,2085,3238,3042,2916],"class_list":["post-31521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-banking-and-finance","tag-conclusion","tag-financial-statements","tag-info","tag-ratio-analysis","tag-relationship"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RATIO ANALYSIS - Vskills Blog<\/title>\n<meta name=\"description\" content=\"RATIO ANALYSIS; concept and purpose. Apply for a Vskills certification in Accounting, banking and finance now. Hurry up!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RATIO ANALYSIS - Vskills Blog\" \/>\n<meta property=\"og:description\" content=\"RATIO ANALYSIS; concept and purpose. Apply for a Vskills certification in Accounting, banking and finance now. Hurry up!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/\" \/>\n<meta property=\"og:site_name\" content=\"Vskills Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/vskills.in\" \/>\n<meta property=\"article:published_time\" content=\"2015-05-24T04:48:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-03T07:52:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"259\" \/>\n\t<meta property=\"og:image:height\" content=\"194\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Suryakant Deshpande\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Suryakant Deshpande\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/\",\"name\":\"RATIO ANALYSIS - Vskills Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg\",\"datePublished\":\"2015-05-24T04:48:30+00:00\",\"dateModified\":\"2024-04-03T07:52:55+00:00\",\"author\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/9114ffa89c709a3bbdaa721582a45ce6\"},\"description\":\"RATIO ANALYSIS; concept and purpose. Apply for a Vskills certification in Accounting, banking and finance now. Hurry up!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#primaryimage\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg\",\"contentUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg\",\"width\":259,\"height\":194},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.vskills.in\/certification\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"RATIO ANALYSIS\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#website\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/\",\"name\":\"Vskills Blog\",\"description\":\"Vskills - A Initiative in Assessment to Enhance Employability\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.vskills.in\/certification\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/9114ffa89c709a3bbdaa721582a45ce6\",\"name\":\"Suryakant Deshpande\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/c490405134eafd494f83fe5d2d140457d18c6e9741e62f8c3eaea9e111f1eff9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/c490405134eafd494f83fe5d2d140457d18c6e9741e62f8c3eaea9e111f1eff9?s=96&d=mm&r=g\",\"caption\":\"Suryakant Deshpande\"},\"description\":\"B.Sc , B.Com ,CWA ( inter)\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/author\/suryakant-vithal\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"RATIO ANALYSIS - Vskills Blog","description":"RATIO ANALYSIS; concept and purpose. Apply for a Vskills certification in Accounting, banking and finance now. Hurry up!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/","og_locale":"en_US","og_type":"article","og_title":"RATIO ANALYSIS - Vskills Blog","og_description":"RATIO ANALYSIS; concept and purpose. Apply for a Vskills certification in Accounting, banking and finance now. Hurry up!","og_url":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/","og_site_name":"Vskills Blog","article_publisher":"https:\/\/www.facebook.com\/vskills.in","article_published_time":"2015-05-24T04:48:30+00:00","article_modified_time":"2024-04-03T07:52:55+00:00","og_image":[{"width":259,"height":194,"url":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg","type":"image\/jpeg"}],"author":"Suryakant Deshpande","twitter_misc":{"Written by":"Suryakant Deshpande","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/","url":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/","name":"RATIO ANALYSIS - Vskills Blog","isPartOf":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#primaryimage"},"image":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#primaryimage"},"thumbnailUrl":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg","datePublished":"2015-05-24T04:48:30+00:00","dateModified":"2024-04-03T07:52:55+00:00","author":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/9114ffa89c709a3bbdaa721582a45ce6"},"description":"RATIO ANALYSIS; concept and purpose. Apply for a Vskills certification in Accounting, banking and finance now. Hurry up!","breadcrumb":{"@id":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#primaryimage","url":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg","contentUrl":"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/05\/RATIO-ANALYSIS.jpg","width":259,"height":194},{"@type":"BreadcrumbList","@id":"https:\/\/www.vskills.in\/certification\/blog\/ratio-analysis\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.vskills.in\/certification\/blog\/"},{"@type":"ListItem","position":2,"name":"RATIO ANALYSIS"}]},{"@type":"WebSite","@id":"https:\/\/www.vskills.in\/certification\/blog\/#website","url":"https:\/\/www.vskills.in\/certification\/blog\/","name":"Vskills Blog","description":"Vskills - A Initiative in Assessment to Enhance Employability","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.vskills.in\/certification\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/9114ffa89c709a3bbdaa721582a45ce6","name":"Suryakant Deshpande","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/c490405134eafd494f83fe5d2d140457d18c6e9741e62f8c3eaea9e111f1eff9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c490405134eafd494f83fe5d2d140457d18c6e9741e62f8c3eaea9e111f1eff9?s=96&d=mm&r=g","caption":"Suryakant Deshpande"},"description":"B.Sc , B.Com ,CWA ( inter)","url":"https:\/\/www.vskills.in\/certification\/blog\/author\/suryakant-vithal\/"}]}},"_links":{"self":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/31521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/users\/1241"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/comments?post=31521"}],"version-history":[{"count":7,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/31521\/revisions"}],"predecessor-version":[{"id":74906,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/posts\/31521\/revisions\/74906"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/media\/32116"}],"wp:attachment":[{"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/media?parent=31521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/categories?post=31521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vskills.in\/certification\/blog\/wp-json\/wp\/v2\/tags?post=31521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}