Transcription of RATIO ANALYSIS-OVERVIEW Ratios - NYU
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Ratios - 1 RATIO analysis -OVERVIEWR atios:1. Provide a method of standardization 2. More important - provide a profile of firm s economic characteristics andcompetitive strategies. Although extremely valuable as analytical tools, financial Ratios also havelimitations. They can serve as screening devices , indicate areas ofpotential strength or weakness, and reveal matters that need furtherinvestigation. Should be used in combinations with other elements of financialanalysis. There is no one definitive set of key Ratios ; there is no uniform definitionfor all Ratios ; and there is no standard that should be met for each RATIO .
RATIO ANALYSIS -OVERVIEW Ratios: 1 ... • Should be used in combinations with other elements of financial analysis. ... A common size income statement expresses each ...
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