Ratio Analysis Techniques
Ratio Analysis: It is concerned with the calculation of relationships, which after proper
identification & interpretation may provide information about the operations and state of
affairs of a business enterprise. The analysis is used to provide indicators of past
performance in terms of critical success factors of a business. This assistance in decisionmaking
reduces reliance on guesswork and intuition and establishes a basis for sound judgements
Ratio Analysis: It is concerned with the calculation of relationships, which after proper
identification & interpretation may provide information about the operations and state of
affairs of a business enterprise. The analysis is used to provide indicators of past
performance in terms of critical success factors of a business. This assistance in decisionmaking
reduces reliance on guesswork and intuition and establishes a basis for sound judgements
