Answer / chandana

Ratio analysis is mainly use to show the financial
performance of an organisation. It shows the companies
solvency, liqudity and profitability positions. There are
diffrent types of ratios which shows the performance of
organisation like:
- Solvency ratios
- profitiability ratios
- Leverage ratios

Answer / rajesh dubey

Ratio analysis is a strong tool which management uses for
analysing the financial performance of organisation. There
are several types of ratios. All these ratios give the
management to think about the current senerio of the
organisation and the action to be taken to improve its
performance.

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