OBJECTIVES OF RATIOS

abhishreshthaa

Abhijeet S
OBJECTIVES OF RATIOS

Ratios are worked out to analyse the following aspects of a business organisatlon:


 Solvency: (i) long-term. (ii) Short-term, (iii) immediate

 Stability

 Profitability

 Operational efficiency

 Credit standing

 Structural analysis

 Effective utilisation of resources and

 Leverage or external financing.
 
Back
Top