Friday, January 21, 2011

Financial Ratio Analysis

Financial Ratio Analysis Survey and other financial information is a tool to compare the relationship between. For your information for small businesses to calculate the financial indicators in the income statement and balance sheet information is used. There are many indicators can be calculated. To solve this problem, most business organizations are using some standard factors.

Rate compared to some of the problem is that they will be useless. For example, when you calculate your debt ratio powerful one hour units (eg one year), is 50%. What this really means, it's all your debt ratio and total debt / total assets by 50% since his company's assets to debt financing, it can be taken. You compare that to 50% if there is something you do not know it's good or bad.
Trend Analysis and Industry

This trend (time series), and if the industry (section) associated with your business and industry trends data and other data to compare the analysis of the relationship go, company number and the date and know what can.

You can also compare the relationship of industry data and companies can be. You to calculate the financial indicators for the industry, such companies can collect the data and compared with the company to see how the entire industry. Ideally, your business's financial picture to get a good picture, you may need to do both.

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