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vigilance Science-II Prof. R.Madumathi MODULE 2 Business Analysis Types Of Business Analysis comparative Statements Ratio Analysis Break Even Analysis Comparative Statements Comparative avouchments model the accounts of both or more consecutive years grimace by side, such that an absolute comparison of the financial statement position of a business first step can be made. The comparative statements also indicate the percentage tack everyplace the previous year. This indicates the upward or downward trend of precise accounts in the balance sheet. Indian Institute of Technology Madras  circumspection Science-II Prof. R.Madumathi Comparative Statement Particulars ASSETS Land and Buildings Plant and Machinery Stock Debtors Cash and camber balance LIABILITIES Creditors Term Loan Debentures CAPITAL Shargon corking Preference capital Reserves Amount Amount %change 60,000 15,000 25,000 5,000 12,000 3,000 20,000 2,000 8,000 10,000 40,000 20,000 15,000 5,000 68,000 12,000 35,000 6,000 14,000 1,000 25,000 6,000 12,000 7,000 43,000 25,000 15,000 3,000 13.3% - 20% 40% -20% 16.7% -66.7% 25% 200% 50% 30% 7.5% 25% 0% -40% Ratio Analysis The relationship between two relevant accounting information is termed as a ratio.

Ratios are hence relative measures and help in business enterprise evaluation across years, enterprises, and industries. Types Of Ratios Profitability Ratios Liquidity Ratios Turnover Ratios supplement Ratios Market Measure Ratios Indian Institute of Technology Madras Management Science-II Prof. R.Madumathi Profitability Ratios Net Profit Ratio Higher the net amplification ratio better the operational performance of the company. An increase in the net profit ratio is always viewed positively. Return on Investment An improvement in the return on investment is viewed gilded by the company. When the ratio is higher than the industry standard / pass judgment ratio, the companys profitability position will be... If you indispensability to get a full essay, order it on our website: Ordercustompaper.com

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