Financial Ratio Analysis

The financial performance of a firm demonstrates how positively a firm is performing. To access the financial performance of a firm, the most prevalent method is ratio analysis which provides a quick overview of a firm’s performance.

This unit provides a detailed introduction to ratio analysis, the classification of ratio analyses and the norms of evaluation. It also describes the managerial uses of the primary ratio, computation and purpose. On completion of this unit, candidates will be able to understand a system of ratios that responds to the management’s control needs.