# Ratio Analysis Homework Help Online

## Best Ratio Analysis Homework Help Online

Ratio is a mathematical relationship between two or more figures. Or in simpler words it can be said that ratio is the result of one quantity divided by the other. Ratio Analysis is based on accounting and is used in companies, firms and organisations to obtain a quick report about its performance in several major areas. Ratio is usually compared in the same companies or the companies that come under same branch as the acceptable ratio for one company may not be accepted by the other. There are many kinds of ratios such as Short-term Solvency Ratios, Debt Management Ratios, Profitability ratios, Market Value ratios, etc. Ratio Analysis is a primary technique of the analysis of financial report in business aspects. Ratio Analysis Homework Help Online provides basis of knowledge and a depth idea about ratio analysis.

### Importance Of Ratio Analysis Homework Help Online

Basically Ratio Analysis is of two steps. The first step includes the calculation of ratio and the second step includes comparison as described below:

1. Ratio Calculation: – It is a process in which the ratio is calculated.
2. Ratio Comparison: – This step includes the comparison of the data with the average ratio of the firm or its the past ratio.

The ratio can be further compared by three different ways- Cross section Analysis, Time Series Analysis and Combined Analysis. Ratio Analysis contributes a lot in financial statement yet it has various limitations like sometimes it is difficult to interpret and there are chances of wrong conclusion too. However, Ratio Analysis is a great gift for industry and other firms. The importance of Ratio Analysis can be explained by Ratio Analysis Homework Help Online are: –

• It acts like a tool to manage and make decision in a firm.
• By the help of Ratio Analysis, the management can evaluate the firm’s performance and its efficiency over a short or long period of time.
• It is usually done by comparing the present ratio with the firm’s past ratio or sometimes with the other companies too.
• This comparison process helps the management to know how tough the competition is and where the company stands in the market, position, etc.
• It is very useful for the people who do not belong to the company like investors, buyers as it acts like a mirror to the company’s performance and its whereabouts.
• It exposes the strength as well as the weakness of a company.
• It can also provide an early warning regarding the financial condition of a firm whether it is improving or not.
• It helps in decision making on financial activity by a thorough analysis.
• It also helps to reduce the cost in certain areas and highlights the weak areas.