How will draw inferences about the financial health and
performance using ratio ?
Answer Posted / h.r. sreepada bhagi
One can ascertain the financial health of a company by
comparing Liquid Ratio (Quick Ratio) or Current Ratio with
the Standards, Industries & other leading companies data
periodically.
Gross Profit & Net Profit ratios can be used to ascertain
the operating efficiency and profitability of the company by
comparing it with the Industry & other leading companies in
the Industries for different periods.
Likewise, Debt-Equity Ratio, EPS, P/E Ratios, etc. can be
used to measure an organisations ability to perform,
compete, grow and potential over a period of time.
Comparison of any ratio of the same company over several
years, comparison with the Industry, with other Companies
will help drawing inferences about the growth, ability and
potential of a company.
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
Whether the TIN and CST no. remain same for a firm in M.P. state. If a firm ask for CST but having only TIN no. is it correct to entertain his invoice?
What is the meaning of Receipt & Payment, Income & Expenditure, Profit & Loss A/c? Under What cercumstances these are prepared?
what you mean by cross dunning
How and by whom the Percentage of Depreciation is fixing?
All Accounting Question Related Send Me ..
What is 100% EOu? what is the benifit and what is difficulty of it?
Expand ________FIPB
can payorder be issued for outstation?if yes then how?should it be account payee?
we are run construction (residence & commercial)last year we are sale 4 flats (16 flats apartment) registration value example:10.75 * 4 = 43.00 but we are collected from customers 45.00 total so 45 - 43 = 2.00 this amount we are booking additional agreements work amount (income)because we are standing sub contractors expendeture side 2.00, we are service tax paid or not ?
In order to comply with the matching principle, adjustment entries are made at the preparation of ----------
Expand---------DBPC
what are the financial ratios that a manager see in accounting?
What is contract accounting?
can i get exact salary of clerk in SBI. and i want to know about promotion details .....
What is PE ratio formula ?