Ratio Analysis Definition

Below please find a definition of “Ratio Analysis”

Financial Analysis Training & Glossary TermsRatio Analysis: Individuals use a tool called ratio analysis for conducting quantitative analysis of information that is contained in a firm’s financial statements. Current numbers are taken into account for calculating ratios in the current year and that is followed by analysis of information in the previous years, other companies and sometimes even the economy as a whole for gauging the performance of the firm.

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