• Financial Ratio Analysis

    Financial Ration analysis is used to analyze the financial condition of a company or compare its financial health with other peer group companies. Financial Ratio can be used for the following cases

    • To compare the financial health among peer companies
    • To compare two companies from different industries
    • To check the financial performance and compare with previous performance.
    • To find out the investment opportunity or growth potential
    • To select the most suitable company in a industry for investment purpose.

    Financial Ratio can be classified in different based on different financial aspects of the company. They are mainly

    1. Liquidity Ratios
    2. Profitability ratios
    3. Solvency Ratios
    4. Activity ratios
    5. Payout Ratios
    6. Valuation Ratios
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