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Class X

Mathemaitcs
Meaning of Ratio
Meaning of Accounting Ratio
Meaning of Ratio Analysis
Methods of Expressing Accounting Ratios
Objectives of Ratio Analysis
Advantages of Ratio Analysis
Utility/Significance of Ratio Analysis
Limitations of Ratio Analysis
Classification of Ratios
ANALYSIS OF DIFFERENT RATIOS - AT A GLANCE

Relationship between two related or interdependent items, expressed in arithmetical terms is called a ratio.

According to R.N. Anthony, "A ratio is simply one number expressed in terms of another. It is found by dividing one number into the other."

Hence, ratios are simply a means of highlighting in arithmetical terms the relationship between figures drawn from the financial statements.

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