Question

what do you mean by Ratio Analysis?
answer in brief
class 12th question​

Answer 1

Answer:

Ratio analysis compares line-item data from a company's financial statements to reveal insights regarding profitability, liquidity, operational efficiency, and solvency. Ratio analysis can mark how a company is performing over time, while comparing a company to another within the same industry or sector.-✅

Answer 2

Answer:

Ratio Analysis

An analysis of financial statements with the help of ‘accounting ratio’ is termed as Ratio Analysis. Ratio Analysis is a process of determining and interpreting relationships between the items of financial statements. Its purpose is to provide a meaningful understanding of the performance and financial position of an enterprise. Thus, it is a technique for analyzing the financial statements by computing ratios.

Explanation:

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