5
Q:
A) Evaluate financial performance of a company | B) To improve profits of a company |
C) Evaluate sales | D) None of the above |
Answer: A) Evaluate financial performance of a company
Explanation:
Explanation:
Ratio analysis helps us to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency. The trend of these ratios over time can be used to check whether they are improving or deteriorating.