Accounting Dictionary
Ratio Analysis
Ratio Analysis uses percentages, rates, and proportions to examine the relationships between the numbers on the financial statements.
Using ratios financial analysts can identify trends and pinpoint strengths and weaknesses in the business’s operations. Examples of ratios are current ratio, debt ratio, and profit margin ratio.
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/ratio-analysis/
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