Preview

financial bodies

Satisfactory Essays
Open Document
Open Document
4507 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
financial bodies
FINANCIAL BODIES
HEADS
Minister of Corporate Affairs

Lt. Sachin Pilot.Analysis of the data on Ratio:
Ratio analysis is one of the techniques of financial analysis to evaluate the financial condition and performance of a business concern. Simply, ratio means the comparison of one figure to other relevant figure or figures. According to Myers , “Ratio analysis of financial statements is a study of relationship among various financial factors in a business as disclosed by a single set of statements and a study of trend of these factors as shown in a series of statements."

Advantages and Uses of Ratio Analysis
There are various groups of people who are interested in analysis of financial position of a company. They use the ratio analysis to work out a particular financial characteristic of the company in which they are interested.

Finance Commission of India
Dr. Y. Venugopal ReddyAnalysis of the data on Ratio:
Ratio analysis is one of the techniques of financial analysis to evaluate the financial condition and performance of a business concern. Simply, ratio means the comparison of one figure to other relevant figure or figures. According to Myers , “Ratio analysis of financial statements is a study of relationship among various financial factors in a business as disclosed by a single set of statements and a study of trend of these factors as shown in a series of statements."

Advantages and Uses of Ratio Analysis
There are various groups of people who are interested in analysis of financial position of a company. They use the ratio analysis to work out a particular financial characteristic of the company in which they are interested.

Governor of Reserve Bank of India,(RBI)
Dr. Raghuram RajanAnalysis of the data on Ratio:
Ratio analysis is one of the techniques of financial analysis to evaluate the financial condition and performance of a business concern. Simply, ratio means the comparison of one figure to other relevant figure or

You May Also Find These Documents Helpful

  • Good Essays

    Capstone Project

    • 1471 Words
    • 6 Pages

    In order to understand a company’s successes of failures, one must first understand each of the characteristics used when looking at its financial documents. Liquidity, profitability, and solvency are all added up by using ratio analysis. Ratio Analyses involve dividing two numbers to get a number or percentage, which can then be compared to other companies in the same industry.…

    • 1471 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Overview: Ratio analysis is the most powerful method of using financial statement information to assess the financial well-being and performance of a company. Ratio analysis is used to compare certain data within the financial statements to assess liquidity, solvency, profitability.…

    • 330 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    When analyzing a business, financial statements provide a detailed look into the company and the success or failure which lies within in. Financial ratios are calculated to determine these numbers and to identify other number related variables that have an impact on the company and those investing in the business. Once determined they offer information concerning the businesses return on investment and the ability of the business to pay its bills on time, as well as what their projected future earnings will be. The following depicts the financial status of ABC SDN. BHD with financial ratio analysis.…

    • 833 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Task3 Sec2

    • 293 Words
    • 2 Pages

    Ratios are calculated from an organisation’s financial statements and are an effective business tool in measuring its performance. By comparing the ratios to those of the previous year it is possible to determine whether a business is doing better this year than last year.…

    • 293 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The financial ratio typically analyzes trends and compares the company’s performance compared to other companies in the same industry. The financial ratio can be classified based on its information and frequency of use ( NetMBA, 2015).…

    • 383 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In the table above, I’ve also included the column with the difference between the ratios of Polish Fine Foods and Polish Cuisine Imports in order to make it easier to compare them. In order for Ania to be able to monitor her financial performance using ratio analysis, she needs to understand the ratios she has produced in a context. The context either needs to be in relation to ratio analysis conducted previously and collected over a period of time and this usually takes years; or it can be done in comparison with a direct competitor of Ania. So, in this assignment I’m going to analyse Ania’s ratios using data from the table which are the ratios for Polish Cuisine Imports.…

    • 1255 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Loan Package

    • 1453 Words
    • 6 Pages

    Ratios are used by organizations to compare financial information and performance. Ratio comparisons can be used to compare the financial performance of time periods within the same organization or to compare the performance of different organizations. Ratios are also used to evaluate the financial health of an organization. For example lenders will use financial ratios to determine the organization’s willingness to loan Tootsie Roll Industries, Inc. money. Common ratio categories used include liquidity, solvency, and profitability. By conducting the ratios evaluations the organization can determine the financial health of the organization (Kimmel, Weygandt, & Kieso, 2009).…

    • 1453 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Method Analysis

    • 945 Words
    • 4 Pages

    Ratio analysis: "Ratio analysis involves studying various relationships between different items reported in a set of financial statements. For example, net earnings (net income) reported on the income statement may be compared to total assets reported on the balance sheet. Analysts calculate many different ratios for a wide variety of purposes. (Edmonds 346-347)…

    • 945 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Reflection for the Week

    • 521 Words
    • 2 Pages

    Ratio analysis is based on items found in the financial statements like the balance sheet, income statement and cash flow statement; the ratios of one item or a mixture of items to another item or combination are then added. Ratio analysis is used to form an idea of various aspects of a company’s operating and financial health such as its ability to run smoothly, what assets are readily on hand if needed to convert to cash, and what kind of profit the company is producing or making, if it is a positive or negative. Ratio analysis can provide an early warning sign of a possible improvement or decline in a company 's financial situation or performance. Comparative analysis looks at the financial operation of a business, investors are interested in the sustainable earnings of a business (main part), when investors are interested in making comparisons of a company/business from period to period (Kimmel, Weygandt, & Kieso, 2011). The business world relies on several different types of comparisons to improve the decision making of financial information. Intracompany basis, Intercompany and Industry averages. Intracompany are comparisons within the company that is useful to identify changes in financial relationships and significant trends. Intercompany comparisons are with other companies provide insight into a company’s competitive position. Industry averages are comparisons information about the company’s relative position within the industry (Kimmel, Weygandt &Kieso, 2011).…

    • 521 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ratio analysis is a type of financial information that always prepared to satisfy in some way the needs of various interested parties (stakeholders). Below are some of the benefits that the stakeholders can get from the ratio analysis:…

    • 337 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Ratio Analysis:Ratio analysis is the process of determining and interpreting numerical relationship based on financial…

    • 6112 Words
    • 25 Pages
    Powerful Essays
  • Good Essays

    Financial Ratios

    • 360 Words
    • 2 Pages

    Ratios are used by bankers, investors, and analysts to evaluate various attributes of a companies financial strength and operations.…

    • 360 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Ration analysis can also help us to check whether a business is doing better this year that it was last year; and it can tell us if our business is doing better or worse that other businesses doing and selling the same thing.…

    • 1499 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Emarketing

    • 262 Words
    • 2 Pages

    Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.…

    • 262 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Financial Management

    • 7103 Words
    • 29 Pages

    Analysis of the performance is one of the major requirements for planning. It is necessary to know where we are in comparison with the industry. It is also necessary to bridge the gap between the current and expected postposition by taking corrective measures. Ratio analysis is on of such tool available to analyze the financial performance.…

    • 7103 Words
    • 29 Pages
    Powerful Essays