Reeva Gandhi

Analyzing Financial Ratio Reeva Gandhi

Ratio Analysis measures operational efficiency as well as the financial position of the company. Ratio analysis is widely used for performance analysis. Ratios are systematically used to interpret the Financial Statements, strengths and weakness of a firm as well as its historical performance and current financial condition. It helps in studying the inventory control and the ability of organization to meet up its liabilities. Analysis also helps in understanding the profit earning capability against the sales figure.