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What is accounting ratios?
Accounting ratios are the mathematical comparison of various financial account statements and various categories. It helps in getting proper idea about the financial situation of a company. It helps internal company management, creditors and investors to know how well a company is doing in an industry. For calculating accounting ration there is no limitation. It does not matter whether the company is small or big one. It helps in figuring out which area needs more efforts to be improved for the betterment of the company.
Why you need to study accounting ratio?
A person needs to study accounting ratio because it is the most common as well as simple way to find out the exact standing of any company. It is also used for comprising different companies to find out their position in the industry. This is the reason students really want to learn about accounting ratio and look for Detailed Analysis or Different Accounting Ratio Homework Help so that they can get the clear idea of this concept.
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