EVALUATING RATIO ANALYSIS: Flashcards
1
Q
What is the value of ratio analysis
A
Ratios are more meaningful than numbers withoutu context
Allows for comparisons to be made over timne and between firms
Helps to set targets, and judge whether or not they have been achieved
Can help noth internal and external stakeholders with decision making
Can provide a range of information (there are many more specialists ratios that can be calcultaed)
2
Q
A
