Ratio Analysis, Financial Ratio Analysis in Excel. Read the text version here: https://www.financewalk.com/equity-research-report/ Financial Ratio Analysis Meaning- " The process of calculating the relationships between various pairs of financial statement values for the purpose of assessing a company's financial condition or performance is called ratio analysis." Users of Financial Analysis Financial Analysis can be undertaken by the management of the firm, or by parties outside the firm like owners, creditors, investors, and others. The nature of the analysis will differ depending on the purpose of the analyst. • Trade creditors- are interested in a firm's ability to meet their claims over a very short period of time. Their analysis will, therefore, confine to the evaluation of the firm's liquidity position. • Suppliers of long-term debt- on the other hand, are concerned with the firm's long-term solvency and survival. They analyze the firm's profitability over time, its ability to generate cash to be able to pay interest and repay principal, and the relationship between various sources of funds i.e. capital structure relationships. Long-term creditors do analyze the historical financial statements, but they place more emphasis on the firm's projected, or pro forma, financial statements to make an analysis about its future solvency and profitability. • Investors -- who have invested their money in the firm's shares are most concerned about the firm's earnings. They restore more confidence in those firms that show steady growth in earnings. As such, they concentrate on the analysis of the firm's present and future profitability. They are also interested in the firm's financial structure to the extent it influences the firm's earnings ability and risk. • Management - of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used most effectively and efficiently and that the firm's financial condition is sound. Useful Links: Investment Banking Financial Modeling Courses: http://bit.ly/2xkTwWX Breaking Into Wall Street (BIWS) Courses: http://bit.ly/2OMBUc7 FRM (Financial Risk Management) course: https://www.financewalk.com/bionic-turtle-frm-review/ Inner GPS Career Coaching: https://www.financewalk.com/career-coaching/ Free $397 Prime: http://bit.ly/2ItOkCg