Ratio is an expression of relationship between two or more items in mathematical terms. Ratio may be expressed as a:b (a is to b), in terms of simple fraction, integer, or percentage.   B. A Finance Manager can utilize financial ratios and completely analyse any firm's financial performance without the need for any further financial review via any other company's data.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter5: Completing The Accounting Cycle
Section: Chapter Questions
Problem 14EA: Using the following Balance Sheet summary information, calculate for the two companies presented: A....
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Critically Discuss the two statements below.

A. Ratio is an expression of relationship between two or more items in mathematical terms. Ratio may be expressed as a:b (a is to b), in terms of simple fraction, integer, or percentage. 

 B. A Finance Manager can utilize financial ratios and completely analyse any firm's financial performance without the need for any further financial review via any other company's data. 

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