Procedure of Analysis of ratios

  • Calculation of ratios
  • In interpretation and analysis of the ratios of a particulars firm, no conclusion can be reached unless the calculated ratio is compared with some predetermined standard. The comparison can be with the past ratios of the same firm or average industry standard or with the firm flourishing in that industry. The importance of a correct standard is obvious as the conclusion is going to be based on the standard itself.

Get industry recognized certification – Contact us