S2 - interpretation Flashcards
1
Q
what is ratio analysis
A
numbers alone have little value
Contextualise them
Assess financial health, position or performance through structured analysis
Comparison across time, divisions, organisations and planned performance
2
Q
what is the interpretation process
A
industry norms may be hard to find
Horizontal analysis over time
Vertical analysis can aid intercompany comparisons
3
Q
A
