Accounting Ratio Analysis becomes Simple!

Accounting assignment help provides the students with assistance in accounting topics and makes them understanding the basic concepts of subject.

CL, CA (prHWY.com) May 10, 2012 - Accounting assignments as the name itself impose fear on the students. And ratios in accounting are generally very tough, complex and time-consuming. Financial ratio (or accounting ratio) is a relative magnitude of two numerical values taken from organization financial statements or balance sheets. These ratios are generally calculated to evaluate financial condition of a corporation. Ratios can be expressed as decimal value, such as 0.20, or can be given as an equivalent percent value, such as 20%. Ratios that are usually or always less than 1, such as earnings yield are quoted as percentages while ratios that are more than one are quoted as percentages such as P/E ratio.
Sources of Financial Ratios -
Values which are used in calculating financial ratios are taken from the income statement, balance sheet, statement of cash flows or the statement of retained earnings.
Types of Ratios -
Financial ratios are an integral part of the financial statement analysis. So, financial ratios are categorized on the basis of financial aspect of the business which that ratio measures. Various types of ratios are-
1. Liquidity ratios - that measures the availability of cash to pay debts.
2. Activity ratios - that measures how quickly a firm converts its non-cash assets to cash assets.
3. Debt ratios - that measures the firm's ability of repayment of long-term debt.
4. Profitability ratios - that measures use of assets by the firm and control its expenses to generate acceptable rate of return.
5. Market ratios - measure investor response to owning a company's stock and also the cost of that issuing stock.
Financial ratios are meant for comparisons
 between two or various companies
 between two or various industries
 between different time periods for a company itself
 between a company and its industry average
Students generally pursuing accounts as a subject or doing any professional degree in business like CA, MBA etc are generally encountered with these topics. Assignments given on ratio analysis or numerical, are generally, very tough and lengthy. So online tutoring and assignment help services are available on internet. Accounting assignment help provides the students with assistance in accounting topics and makes them understanding the basic concepts of subject. It will help them in enhancing overall academic performance and prepares them better career opportunities.

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