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Research Paper | Management | India | Volume 12 Issue 10, October 2023
Ratio Analysis Management Accounting
Abstract: This is most important Ratio analysis is a quantitative procedure of obtaining a look into a firm?s functional efficiency, liquidity, revenues, and profitability by analyzing its financial records and statements. Ratio analysis is a very important factor that will help in doing an analysis of the fundamentals of equity. Analysts and investors make use of the methods for ratio analysis to study and evaluate the fiscal wellbeing of businesses by closely examining the historical performance and monetary statements. Comparative data and analysis can give an insight into the performance of the business over a given period of time by comparing it with the industry standards. At the same time, it also measures how well a business racks up against other businesses functioning in the same sector. Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows.
Keywords: Ratio analysis including Current Ratio, Gross Profit Ratio, Inventory Turnover Ratio, Current Assets Ratio, Liquidity Ratio
Edition: Volume 12 Issue 10, October 2023,
Pages: 538 - 539