Ratio Analysis And Ratio Analysis: Financial Analysis Of Financial Statements

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2.3. ANALYSIS OF FINANCIAL STATEMENTS RATIO ANALYSIS Financial statements can be broadly analyzed through ratio analysis. A ratio of selected values on an enterprises financial statement is financial ratio. To evaluate the overall financial condition of a corporation or other organization there are standard ratios are used. The market price of the shares is used in regular financial ratios if division in a company traded in a financial market. The values are taken from the balance sheet, cash flow statement, income statement and retain earning statement for the purpose of analyzing the financial ratios. For financial analysis most usable tool is ratio analysis. Main purpose is to compare the risk and return relationship of different sizes of the firm. The …show more content…

In the year 2014 -15 again it increased by the ratio of 5.04% 6 Liquid assets to total assets ratio: To asset on existing basis the extent liquid asset can support its asset base so the liquid asset to total asset is an important liquidity management tool. Formula: Liquidity to total asset ratio= (Liquid assets)/(Total assets)×100 Table showing liquid assets to total assets Year Liquid assets (in lakhs) Total assets (in lakhs) Liquidity ratio % 2010-2011 2900.78 21753.38 13.33 2011-2012 3246.86 26522.25 12.24 2012-2013 5031.22 31802.07 15.82 2013-2014 7321.63 34606.64 21.16 2014-2015 7263.74 36293.08 20.00 The below chart showing the liquidity asset to total asset

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