To evaluate a company’s performance, investors need a benchmark to which they can compare its financial ratios. What are some of the problems associated with these comparisons?
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To evaluate a company’s performance, investors need a benchmark to which they can compare its financial ratios. What are some of the problems associated with these comparisons?
Financial ratio is defined as an accounting ratio, which used to choose two main numerical value for comparison that have taken from the financial statements of the enterprise. In accounting, there are standard ratios helps in evaluating an overall financial condition of the company.
It is very useful indicator of performance of the firm as well as financial situation and these ratios helps in analyzing the trends and also helps in making the comparison for financial of the firm. It also helps in assessing about the prediction of the future prediction.
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