Option1-Fraction
Option 2-Percentage
Option 3-Number of times
An accounting ratio is a mathematical calculation that compares two or more accounting numbers taken from a company's financial statements. These ratios are used to analyze and assess various aspects of a company's financial performance and position. They are expressed as fractions, proportions, percentages, or numbers of times to provide meaningful insights into the relationships between different financial elements. By examining accounting ratios, financial analysts, investors, and stakeholders can gain valuable insights into a company's profitability, liquidity, efficiency, and overall financial health. These ratios help in making informed decisions, identifying strengths and weaknesses, and comparing the company's performance with industry benchmarks. |
