Key Ratio Analysis

Business Analysis Methods Guide

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The comprehensive guide to business analysis methods
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Business Analysis Methods
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Key Ratio Analysis
Key ratio analysis is also known as financial ratio analysis or
basically the determination of the ratio of the relative magnitude of any two selective numerical values in
the financial statements of a business enterprise. In general accounting procedures, several standard key
ratios are analyzed to evaluate the financial strength or weakness of an organization from various angles or
perspectives. This key ratio analysis method is used by the management and other managers within the
business venture, by the current shareholders
the firm, security analysts, investment and fund managers, stock market brokers and consultants, and even
government agencies.
This key ratio analysis helps all these groups to determine the so
its performance with that of its competitors, as well as its place in the economy. Most of the ratios are
presented as percentages, while a few are expressed as decimal values. At times, the reciprocal values of
the ratios are also used to compare certain financial factors. Normally, the values for calculating the key
ratios are obtained from the profit and loss or income statements, cash flow statements, balance sheets,
inventory details, investment and capital expen
borrowings, etc.

The comprehensive guide to business analysis methods
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Key Ratio Analysis
Key ratio analysis is also known as financial ratio analysis or accounting ratio analysis. This method is
basically the determination of the ratio of the relative magnitude of any two selective numerical values in
the financial statements of a business enterprise. In general accounting procedures, several standard key
ratios are analyzed to evaluate the financial strength or weakness of an organization from various angles or
perspectives. This key ratio analysis method is used by the management and other managers within the
business venture, by the current shareholders and potential buyers of shares in the market, the creditors of
the firm, security analysts, investment and fund managers, stock market brokers and consultants, and even
This key ratio analysis helps all these groups to determine the soundness of the organization and compare
its performance with that of its competitors, as well as its place in the economy. Most of the ratios are
presented as percentages, while a few are expressed as decimal values. At times, the reciprocal values of
ratios are also used to compare certain financial factors. Normally, the values for calculating the key
ratios are obtained from the profit and loss or income statements, cash flow statements, balance sheets,
inventory details, investment and capital expenditure statements, funds flow statements such as

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accounting ratio analysis. This method is
basically the determination of the ratio of the relative magnitude of any two selective numerical values in
the financial statements of a business enterprise. In general accounting procedures, several standard key
ratios are analyzed to evaluate the financial strength or weakness of an organization from various angles or
perspectives. This key ratio analysis method is used by the management and other managers within the
and potential buyers of shares in the market, the creditors of
the firm, security analysts, investment and fund managers, stock market brokers and consultants, and even
undness of the organization and compare
its performance with that of its competitors, as well as its place in the economy. Most of the ratios are
presented as percentages, while a few are expressed as decimal values. At times, the reciprocal values of
ratios are also used to compare certain financial factors. Normally, the values for calculating the key
ratios are obtained from the profit and loss or income statements, cash flow statements, balance sheets,
diture statements, funds flow statements such as

The comprehensive guide to business analysis methods
Copyright AKS-Labs


Business Analysis Methods
Guide

More in the full version of the Business Analysis
Methods Guide:
29 page SWOT guide

Alternative methods to SWOT analysis
Steps in solving problems using Porters Five
Solving problems using the SWOT analysis
Result
SWOT analysis: conclusions
SWOT FAQ
SWOT checklist
21 PowerPoint templates
presentation
32 page PEST Analysis Guide (Adobe PDF file)
Introduction to the method and problem of PEST
PEST and SWOT
PEST and its extensions
Step-by-step guide on how to use PEST for solving business problems
Key success factors of PEST
Examples of real-life usage of PEST
Conclusions
PEST FAQ
Checklist for PEST
Other aspects related to PEST
Review of the most popular business analysis methods
The review includes introduction to the method, step
practices.
80/20 Pareto Analysis (4 page)
Break-even Analysis (4 page)
Competitive Analysis (4 page)
Key Ratio Analysis (3 page)
PEST Analysis (3 page)
SWOT Analysis (4 page)
Variance analysis (4 page)
"What if..." simulation (4 page)
Learn more online: http://www.measurebusiness.com/


The comprehensive guide to business analysis methods
AKS-Labs 2501 Blue Ridge Road
Suite 150 Raleigh NC 27607
More in the full version of the Business Analysis
Methods Guide:
SWOT guide (Adobe PDF file):
Alternative methods to SWOT analysis
Steps in solving problems using Porters Five Forces for Competitive Position
Solving problems using the SWOT analysis - 5 examples in format: Problem, Response with SWOT,
SWOT analysis: conclusions
templates (.pptx file; check examples below) for SWOT
32 page PEST Analysis Guide (Adobe PDF file)
Introduction to the method and problem of PEST
PEST and its extensions
step guide on how to use PEST for solving business problems
Key success factors of PEST
life usage of PEST

Other aspects related to PEST
Review of the most popular business analysis methods
The review includes introduction to the method, step-by-step algorithms, pros and cons, best
80/20 Pareto Analysis (4 page)
even Analysis (4 page)
Competitive Analysis (4 page)
Key Ratio Analysis (3 page)
PEST Analysis (3 page)
SWOT Analysis (4 page)
Variance analysis (4 page)
"What if..." simulation (4 page)
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More in the full version of the Business Analysis
Forces for Competitive Position
5 examples in format: Problem, Response with SWOT,
(.pptx file; check examples below) for SWOT analysis
step guide on how to use PEST for solving business problems
Review of the most popular business analysis methods
step algorithms, pros and cons, best

The comprehensive guide to business analysis methods
Copyright AKS-Labs


Business Analysis Methods
Guide


The comprehensive guide to business analysis methods
AKS-Labs 2501 Blue Ridge Road
Suite 150 Raleigh NC 27607
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