A Study on the Issues of Financial Ratio Analysis

Financial statement analysis consists of applying analytical tools and techniques to money statements in an endeavor to quantify the in operation and money conditions of a firm. The stress of the analysis changes relying upon one’s relationship with the corporate. A analyst extending a short, unsecured loan to an organization can examine the firm’s income and also the liquidity of the company’s assets. A stock capitalist, on the opposite hand, is primarily searching for future growth in income and earnings. Investors generally examine variables which may considerably impact a firm’s money structure, sales, earnings production, and dividend policy.