Word | Noun | Adjective | Verb | Adverb |
---|---|---|---|---|
financial analysis | Yes | No | No | No |
ratio analysis | Yes | No | No | No |
financial analysis (noun) | ratio analysis (noun) |
---|---|
Assessment of the (1) effectiveness with which funds (investment and debt) are employed in a firm, (2) efficiency and profitability of its operations, and (3) value and safety of debtors' claims against the firm's assets. | Single most important technique of financial analysis in which quantities are converted into ratios for meaningful comparisons, with past ratios and ratios of other firms in the same or different industries. |