大象传媒

RatiosRatio analysis

It is often necessary to compare a firm's performance or different organisations' performance over a number of years. Ratio analysis can be used to compare the year to year profitability, liquidity and efficiency of a business or similar businesses.

Part of Business managementFinance

Ratio analysis

It is sometimes hard to compare different organisations' performance, or even the same firm's performance over the years. One method used by businesses to compare their performance is

Ratio analysis covers three areas:

  • profitability
  • liquidity
  • efficiency