Financial Statement and Ratio Analysis

Financial Statement and Ratio Analysis

Author Name : Shreyash Bari, Prof. Kiran Rodrigues

EXECUTIVE SUMMARY Ratio Analysis: An Overview: Ratio analysis is a quantitative method used to gain insights into a company's financial health and performance by comparing various financial metrics from its financial statements. It helps stakeholders-such as managers, investors, and creditors—make informed decisions. Purpose of Ratio Analysis: Performance Evaluation: Ratios help in assessing how well a company is performing over time. Comparative Analysis: They allow for comparison between different companies within the same industry. Financial Health Check: Ratios give insights into the financial stability and health of a company. Decision-Making: Investors, creditors, and management use ratios to make informed decisions.