Advertisements
Advertisements
प्रश्न
State any three advantages of ratio analysis.
टीपा लिहा
उत्तर
Following are the advantage of ratio analysis:
- Measuring operational efficiency: Ratio analysis helps to know the operational efficiency of a business by finding the relationship between operating cost and revenues and also by comparison of present ratios with those of the past ratios.
- Intra firm comparison: Comparison of the efficiency of different divisions of an organization is possible by comparing the relevant ratios.
- Inter-firm comparison: Ratio analysis helps the firm to compare its performance with other firms.
shaalaa.com
Advantages of Ratio Analysis
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
