Ratio Analysis/ Analysis of Financial Statements

Ratio Analysis/ Analysis of Financial Statements

Definition:

           ratio analysis is one of the financial analysis technique which is used to arser the financial position and financial performances of a business.

Types of Ration Analysis: 

                         

1. Ratio related to Income statement
2. Ratio related to Balance Sheet

     IMPORTANT FORMULA'S

1. RETURN ON ASSETS OR 

RATE OF PROFIT ON TOTAL ASSETS:

return on assets=net profit/total assets * 100

the others formula will be coming next Insha Allah.

Thanks

Noor Wali

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