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What is the importance of ratios

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 September 2012 please tell me what is the importance of ratios like GP , NP and stock/turnover ? is is necessary that they shud be maintained ?
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CA Amit Jaiswal

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CA Amit Jaiswal (Expert)
27 September 2012 These are the most imp ratios that help management in decision making.
This is why these are also incorporated in form 3CD of Tax Audit.

All the Best.....
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CA Lokesh Pokharna

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CA Lokesh Pokharna (Expert)
27 September 2012 For A retailer GP ratio should be same on an average in books.. for other it may vary



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CA Lokesh Pokharna

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CA Lokesh Pokharna (Expert)
27 September 2012 very imp for decision making ...
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Querist : Anonymous

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Querist : Anonymous (Querist)
29 September 2012 thank u....can u please detail a bit how it is important by an example ?
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Querist : Anonymous

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Querist : Anonymous (Querist)
04 October 2012 can u please explain me in detail a bit

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