analyze the financial condition of a company‚ we rely on Financial Statements. Financial ratios‚ derived from Financial Statements‚ make this analysis possible. These ratios also come in handy when you need to compare different companies. Let’s first understand what these ratios mean. Then‚ we will look at the different categories they fall into and study the key ratios within each category. What are Financial Ratios? They are expressions that give us the relationship between different components of
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rice crackers‚ cheese snacks‚ cuttlefish flavoured snacks‚ and onion rings. The company exported those products to many Middle East countries and European countries. RATIO ANALYSIS LIQUID RATIO Liquidity means that the amount of money available to the company to pay off its short term debts. The higher liquidity ratio is
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“A STUDY ON RATIO ANALYSIS” IN BANK OF INDIA‚SALEM A Project Report submitted to the SRM University in partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted by J.Anand (Reg.No. 3511010044) Under the guidance of Dr. T.Ramachandran School of Management SRM University Kattangulathur MAY- 2012 SRM University Kattangulathur BONAFIDE CERTIFICATE This is to certify that the Project Report entitled “Ratio analysis in
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4 Chapter 1. Introduction 5 1.1 Theoretical background 8 1.1.1 Use and significance of Ratio Analysis 8 1.1.2 Limitations 11 1.1.3 Classifications of ratios 13 1.2 Research Methodology 33 1.2.1 Need for the study 33 1.2.2 Scope of the study 33 1.2.3 Objectives of the
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LIQUIDITY Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations. Investors often take a close look at liquidity ratios when performing fundamental analysis on a firm. Since a company that is consistently having trouble meeting its short-term debt is at a higher risk of bankruptcy‚ liquidity ratios are a good measure of whether a company will be able to comfortably continue as a going concern. Working Capital Working capital is the amount by which the
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Contents page Introduction……………………page1 Literature review………………page 2 Uses of ratios…………………...Page 2 Types of financial ratios………Page 3 ➢ Profitability ratios……….Page 3 ➢ Efficiency Ratios………....Page 4 ➢ Liquidity Ratios………….Page 5 ➢ Investment Ratios………..Page 6 Limitations of ratios…………..Page 8 Conclusion……………………..Page 8 Introduction. The primary purpose of accounting is to convey information about the business to management‚ investors‚ shareholders‚ government
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Debt Ratio Debt Ratio • defined as the ratio of total debt to total assets‚ expressed in percentage‚ and can be interpreted as the proportion of a company’s assets that are financed by debt. • Measures the proportion of total assets financed by the firm’s creditors. The higher this ratio‚ the greater amount of other people’s money being used to generate profits. Formula: • The debt ratio is calculated by dividing total debt by total assets. Debt Ratio = Total Debt Total Assets Examples •
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FINANCIAL RATIOS Financial ratios are indicators of a company’s performance as discernable from the company’s Balance Sheet and income Statement. We will discuss some of the simple ratios of a company and talk about their significance. Liquidity Ratios: Show the company’s ability to pay of its current liabilities from its current assets. 1. Current Ratio Current assets should be significantly higher than current liabilities so that the current ratio is higher than 2:1. 2. Quick Ratio (Acid
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The Golden Ratio The golden ratio is a number used in mathematics‚ art‚ architecture‚ nature‚ and architecture. Also known as‚ the divine proportion‚ golden mean‚ or golden section it expresses the relationship that the sum of two quantities is to the larger quantity as is the larger is to the smaller. It is also a number often encountered when taking the ratios of differences in different geometric figures. Represented mathematically as approximately 1.618033989‚ and by the Greek letter Phi
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Introduction of Ratio MEANING OF RATIO: A ratio is one figure express in terms of another figure. It is a mathematical yardstick that measures the relationship of two figures‚ which are related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute
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