Ratio analysis is the process of determining and presenting the relationship of items and group of items in the statements. It is helpful to know about the liquidity, solvency, capital structure and profitability of an organization. It may be expressed in the following three ways : 1. Pure Ratio or Simple Ratio :It is expressed by the simple division of one number by another. 2. USo Many Times :In this type, the relation between two figures is calculated how Many Times a figure is,
Ratio analysis is the process of determining and presenting the relationship of items and group of items in the statements. It is helpful to know about the liquidity, solvency, capital struc…