#1
30th March 2013, 11:36 AM
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MBA-Projects of Ratio Analysis
Can you provide me the information for the MBA-Projects of Ratio Analysis?
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#2
1st April 2013, 04:43 PM
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Re: MBA-Projects of Ratio Analysis
Here I am giving some information about the MBA-Projects of Ratio Analysis: Advantage of Ratio Analysis 1 Helpful in comparative Study. 2 Helpful in Forecasting. 3. Helpful in locating the weak spots of the business. 4 Fixation of ideal Standards. 5 Effective Control. 6 Study of Financial Soundness. 7 Estimate about the trend of the business. 8 Helpful in analysis of Financial Statements. Limitations of Ratio Analysis Limited use of a single data. Effect of personal ability and bias of the analyst. Comparison not possible if different firms adopt different accounting policies. Ratio analysis becomes less effective due to price level changes. Lack of proper standards. False accounting data gives false ratio. Ratio may be misleading in the absence of absolute data. Ratios alone are not adequate for proper conclusions. |
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