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How ratio analysis is useful for foreing
how ratio analysis is useful for forecasting
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Quick Summary
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.
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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