Ratio Analysis Davidson Limited for 2015 and 2016

January 2017 | 12 pages | ID: R2B3F2BF765EN
Sadia Saeed

Abstracts

The quantitative evaluation of financial reports is known as ratio analysis in which data of statements is used. In ratio analysis, the data of various statements such as the statement of financial position, the statement of profit & loss, and statement of cash flows is used for calculating ratios. The ratios are compared across various time periods for various companies. Ratio analysis is comprehensive analysis of company in which profitability position and liquidity of company is evaluated in detail. Analysis of Ratio is a keystone of essential investigation. Ratio analysis is considered an important measure of check the position of company. In ratio analysis, a company calculates several ratios such as liquidity ratios, efficiency ratios, profitability ratios, equity ratios and debt ratios. These ratios are used for analyzing the financial position of company. Analysis of Ratios is beneficial for various parties such as investors, share holders, managers, employees and debtors (Lazaridis & Tryfonidis 2006). Cont… (1500 words of this report)

Contents

Introduction
Five major categories of Ratios
The liquidity Ratios
The Debt ratios
The efficiency ratios
Profitability
Equity ratios
Importance of Ratio analysis
Analyzing Financial Statements
Judging Efficiency
Locating Weakness
Formulating Plans
Comparing Performance
Liquidity Ratios
Explanation
The Efficiency Ratios
Explanation
The Debt Ratios
Explanation
Profitability Ratios
Explanation
Equity Ratios
Explanation
Recommendations and Conclusion
References
Appendix
Liquidity Ratios
Efficiency Ratios
Debt Ratios
Profitability Ratios
Equity Ratios