Question

Ratio analysis is a tool to examine the health of business with a view to make financial results more intelligible explain​

Answer 1

Answer:

Here

Explanation:

Ratio analysis is a tool to examine the health of a business with a view to make financial results more intelligible.  It's through the ratio analysis that the liquidity, solvency, profitability and the activity of a business entity may be identified in an accurate manner.

Answer 2

The above-given sentence can be explained as follows:

• Generally, a ratio denotes a proportional relationship between two numbers or quantities.
• It could be a ratio, which is a relationship between two numbers that reveals how much greater one amount is than the other.
• Financial Analysis is used by a company's management to examine the firm's financial strengths and shortcomings.
• The cornerstones of building a financially successful firm are effective planning and financial management.
• Ratio analysis is a useful management tool that can help us build and run a financially successful business.
• On the one hand, ratios make summarising a big quantity of financial data in financial statements easier, and on the other, they provide a qualitative appraisal of a company's financial success.
• The liquidity, solvency, profitability, and activity of a corporation can all be determined via ratio analysis.
• For financial analysis, ratio analysis is a useful technique.
• Ratios emphasize the relationship between distinct financial statistics, enabling an analyst in acquiring insights and formulating appropriate forward-looking projections after simplifying the reading of Financial Statements.
• Although ratio analysis is based on historical accounting data, trend analysis can help with planning, controlling, and forecasting.
• Ratios make it easier to analyse a company's history and current performance, as well as compare one organization to another, by establishing a link between two facts and assigning importance.