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Q: What is the purpose of a ratio analysis?
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types of ratio analysis?

generally, there are five types of ratio analysis which are done by companies. they are:a) Profitability analysisb) Liquidity analysisc) Solvency analysisd) Asset efficiency analysise) Market value analysis


Uses of ratio analysis?

The ratio analysis is useful for inter firm comparison which basically implies that a company compares its performance with that of its industry peers. Ratio analysis is very important in simplifying the accounting figures to make then understandable to a common man.