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Financial statements cannot be intelligently analyzed without ratio analysis. They: — Assist in analyzing the performance of the company and comparing the performance with that of other similar companies; — Highlight the relative strengths and weaknesses of a company - whether it is profitable, financially sound or in a state of decline; — Help in determining whether the company has earned sufficiently on the funds invested and its debt servicing ability; — Enable the forecasting of future performance. This book written for businessmen, financial managers, investors and students has been published in England and in India. In this completely revised reprint, Raghu Palat explains the magic of ratio analysis clearly and lucidly in non technical language with several examples.
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