CHAPTER -9

MINI PROJECT

ON

RATIO ANALYSIS
 CH-9 MINI PROJECT

INTRODUCTION

MEANING:-

The term “ratio” refers to the numerical and quantitative relationship between two items or variables. This
relationship can be exposed as
• Percentages
• Fractions
• proportion of numbers

A ratio is defined as “The indicated quotient of two mathematical expression” and as “ The
relationship between two or more things.” In financial analysis, A ratio is used as a benchmark for evaluating the financial
position and performance of a firm. The relationship between two accounting figures, expressed mathematically, is know as a
Financial Ratio. Ratio helps to summaries large quantities of financial data and to make qualitative judgment about the firm’s
financial performance.
 Ratio analysis is defined as the systematic use of the ratio interpret the financial statement. So that the
strengths and weaknesses of a firm, as well as historical performance and current financial condition can be determined.