G. K.'s Way to Learn - Ratio Analysis

please give the notes bout Ratio  analysis

am starting here various concepts related to ration here now....

Financial analysis and planning 

purpose - obtaining material and relevant information

information fr what ? - necessary fr ascertaining the financial strenghts & weeknesses of enterprise

wat is the need of this ? - its necessary to analyse the data depicted in financial statements

Conclusion

Co. ki financial position ko analyze krne k lie financial statements ke data ko analyse krke relevant information provide krna

tools of financial planning & analysis

- Ratio Analysis

- Cash Flow

- Fund Flow

Ratio analysis

ek single accounting figure ho skta hai koi meaningful information provide na kre lekin jb is figure ko kisi aur dusri figure k sath relate ki ajae to ye definitely kuch na kuch useful information provide kregi

ratio analysis yar kuch b nai hai, ye bs different figures ka comparison hai 

e.g ek year ki figures ko kisi dusre year ki figures se compare krna

       ek co. ki figures ko kisi dusri co. ki figures se compare krna

Types of Ratios

- Liquidity Ratios

     ability of business to pay its short term liabilities

- Capital Structure / Leverage Ratios

     measure the long term stability and structure of the firm

- Activity Ratios

     to evaluate the efficiency with which the firm manages and utilises its assets

- Profitability Ratios

     measure the operational efficiency of the firm and reflects the final results of business operations

Liquidity Ratios

- Current Ratios

- Quick Ratios

- Cash Ratios / Absolute Liquidity Ratios

- Basic Defence Interval

- Net Working Capital Ratio

Current Ratio

best known measure of financial strength

Curretn Assets 

Current Liabilities

R u updating it one by one?