Financial ratios provide a quick and comparable view of the performance of a business - by using financial ratio analysis, a lot of seemingly complex and overwhelming accounting information and year-end reporting can be made easy to comprehend. It may not be easy to adjudge the performance of a...
Profit, simply put, is the gap that exists between a firm’s revenues and its expenditure. So, as long as the company is able to increase its revenues at a certain rate and its expenditure increase at an equal or lesser rate, the company’s profits are likely to improve – this is a layman view of...