Discuss the tendency of ratios to fluctuateover time, explain how accounting practices, seasonality, economy, competitorsas well as other factors can influence them, and how. Use real companies...

SOLUTION:
Ratio Analysis is regarded as the significant instrument of financial analysis. It is basically a
step for developing meaningful connection between specific items or group of items in the
balance sheet or income account. Ratio Analysis is useful in the analysis of company’s
performance by internal as well as external users. The users consist of managers, investors,
long-term creditors and short-term creditors. The managers are keen in knowing the
profitability and asset utilization of the company as their bonus and promotions are...