PPT: Financial Analysis and Planning- Ratio Analysis | Financial Management & Strategic Management for CA Intermediate PDF Download

 Page 1


RATIO ANAL YSIS 
Prof. Atul Mumbarkar
Page 2


RATIO ANAL YSIS 
Prof. Atul Mumbarkar
RATIO ANALYSIS
• Ratio analysis is an important and powerful technique or method, generally, used 
for analysis of Financial Statements.
• Ratios are used as a yardstick for evaluating the financial condition and 
performance of a firm. 
• Ratio Analysis helps to ascertain the financial condition of the firm. In financial 
analysis, a ratio is compared against a benchmark for evaluating the financial 
position and performance of a firm.
Page 3


RATIO ANAL YSIS 
Prof. Atul Mumbarkar
RATIO ANALYSIS
• Ratio analysis is an important and powerful technique or method, generally, used 
for analysis of Financial Statements.
• Ratios are used as a yardstick for evaluating the financial condition and 
performance of a firm. 
• Ratio Analysis helps to ascertain the financial condition of the firm. In financial 
analysis, a ratio is compared against a benchmark for evaluating the financial 
position and performance of a firm.
RATIO ANALYSIS
• Analysis and interpretation of various accounting ratios 
gives a better understanding of financial condition and 
performance of the firm in a better manner than the 
perusal of financial statements.
• Ratios are the symptoms of health of an organization 
like blood pressure, pulse or temperature of an 
individual. They are the indicators for further 
investigation.
Page 4


RATIO ANAL YSIS 
Prof. Atul Mumbarkar
RATIO ANALYSIS
• Ratio analysis is an important and powerful technique or method, generally, used 
for analysis of Financial Statements.
• Ratios are used as a yardstick for evaluating the financial condition and 
performance of a firm. 
• Ratio Analysis helps to ascertain the financial condition of the firm. In financial 
analysis, a ratio is compared against a benchmark for evaluating the financial 
position and performance of a firm.
RATIO ANALYSIS
• Analysis and interpretation of various accounting ratios 
gives a better understanding of financial condition and 
performance of the firm in a better manner than the 
perusal of financial statements.
• Ratios are the symptoms of health of an organization 
like blood pressure, pulse or temperature of an 
individual. They are the indicators for further 
investigation.
Types of 
Financial Ratios
Page 5


RATIO ANAL YSIS 
Prof. Atul Mumbarkar
RATIO ANALYSIS
• Ratio analysis is an important and powerful technique or method, generally, used 
for analysis of Financial Statements.
• Ratios are used as a yardstick for evaluating the financial condition and 
performance of a firm. 
• Ratio Analysis helps to ascertain the financial condition of the firm. In financial 
analysis, a ratio is compared against a benchmark for evaluating the financial 
position and performance of a firm.
RATIO ANALYSIS
• Analysis and interpretation of various accounting ratios 
gives a better understanding of financial condition and 
performance of the firm in a better manner than the 
perusal of financial statements.
• Ratios are the symptoms of health of an organization 
like blood pressure, pulse or temperature of an 
individual. They are the indicators for further 
investigation.
Types of 
Financial Ratios
RATIO ANALYSIS
• There are several groups of persons —
creditors, investors, lenders, management 
and public — interested in the 
interpretation of the financial statements.
• They interpret ratios, for those purposes 
they are interested in, to take appropriate 
decisions to serve their own individual 
interests.