Financial Ratios. Their Meaning and Usage.

By |2021-08-02T14:07:34-05:00May 16th, 2020|

Purpose of Financial Ratios The purpose of financial ratios is to gauge the overall financial health of an organization. They may provide warning signs of potential threats to a company’s solvency, gauge how efficiently an organization applies or utilizes assets, or even how well an organization collects their accounts receivable. Introduction There are basically three