How ratio analysis is useful for foreing
Atharv Sankliya (1359 Points)
06 April 2022
how ratio analysis is useful for forecasting
2 Replies
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8674 Points)
Replied 07 April 2022
It provides significant information to users of accounting information regarding the performance of the business. It helps in comparison of two or more firms. It helps in determining both liquidity and long term solvency of the firm.
sabyasachi mukherjee
(27864 Points)
Replied 10 April 2022
Ratio is useful for the following purposes:
1. forecasts , estimates, budgets.
2. it helps in analyzing the general trends and performance analysis.
3. it also helps an investor in concluding various other decisions as and when required.
1. forecasts , estimates, budgets.
2. it helps in analyzing the general trends and performance analysis.
3. it also helps an investor in concluding various other decisions as and when required.
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