--%>
Assignment Help - homework help

Why do analysts compute financial ratios

Why do analysts compute financial ratios?
Ratios are comparative measures.  Since the ratio illustrates relative value, they let financial analysts to compare information which could not be compared in its raw form.  For instance, ratios may be utilized to compare one ratio to a related ratio, a firm's performance to management's goals, a firm's past and present performance, or a firm's performance with similar type of firms

   Related Questions in Finance Basics

  • Q : Define Referendum Referendum: This is

    Referendum: This is the power of the electors to support or reject statutes or parts of statutes, with particular exceptions and meeting particular deadlines and number of voter’s signatures.

    		•
  • Q : What is Non-governmental Cost Funds

    Nongovernmental Cost Funds: For lawful basis purposes, employed to budget and account for revenues other than common and special taxes, licenses, and fees or some other state revenues.

    		•
  • Q : Question on aggregate supply Normal 0

    Normal 0 false false

  • Q : Describe Modigliani and Miller theory

    Describe Modigliani and Miller theory of dividends? Describe. The Modigliani-Miller theory of dividends says which dividend theory is irrelevant. They claim that it is the income generated by assets that is significant, not how funds are distr

    		•
  • Q : State Section 31.00 Section 31.00 : It

    Section 31.00: It is a Control Section of Budget Act which specifies some administrative procedures. For illustration, the section subjects to the Budget Act appropriations to different sections of the Government Code, restricts the new positions a de

    		•
  • Q : Cause-and-effect chain Normal 0 false

    Normal 0 false false

    		•
  • Q : Debit or credit Hi this is Shailender

    Hi this is Shailender Ojha i want to know when we receive the sales where we put the sales. in debit or credit column . could you please let me know.

    		•
  • Q : Explain the primary advantage of

    Explain the primary advantage to a corporation of investing some of its funds within working capital? Through investing in working capital a firm gets the liquidity it require helping it to pay its bills. Therefore the risk of the firm is reduce

    		•
  • Q : Define Overhead Unit Overhead Unit :

    Overhead Unit: The organizational unit which benefits the production of an article or a service however that can’t be directly related with an article or service to share out all of its expenditures to elements and/or work authorizations. The co

    		•
  • Q : Effect of bank charges discount

    What happens while a bank charges discount interest on a loan? While a bank charges discount interest on a loan the required interest payment is subtracted through the loan proceeds at the time the loan is made. It makes the effective interest

    		•