Paper Contents
Abstract
This paper explores the use of ratio analysis as a fundamental tool for financial statement analysis, assessing the performance and financial health of a business. Ratio analysis involves the computation and interpretation of various financial ratios derived from the income statement, balance sheet, and cash flow statement. This study covers the primary categories of ratios: liquidity ratios, which measure a company's ability to meet short-term obligations; profitability ratios, which assess a company's ability to generate profit relative to sales, assets, or equity; leverage ratios, which evaluate the extent of a company's financing through debt; and efficiency ratios, which examine how effectively a company utilizes its assets.
Copyright
Copyright © 2024 Peddi Rahul Raj. This is an open access article distributed under the Creative Commons Attribution License.
