Accounting for IGCSE & O level - Advanced Principles (Section 3 - No. 29)
What does analyzing financial information from comparison of ratios do?
Helps to determine the capital of business.
Helps to compare the performance of a business and also to monitor it for a period of time.
Helps the shareholders to compare their own performance.
It measures the profitability of the business.
Paaiškinimas
Analyzing financial ratios is a method to measure and monitor the performance of a business over time and to compare it with the performance of other businesses or within its own industry.