About this document
Understanding Ratio Analysis in Finance by Anam is a document available to read on EtoBox.
Ratio analysis is used to determine the financial soundness of a business by analyzing relationships between financial statement figures. Ratios establish mathematical relationships between two quantitative variables by dividing one figure by another. Alexander Wall designed one of the earliest systems for ratio analysis in 1909 to present financial results and assess periods of business operations. Ratios can be expressed as percentages, quotients, or rates to compare two related accounting values.
- Author
- Anam
- Language
- EN