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Archive for January, 2017

Why Financial Analysis is Vital for Managers?

We’ve already started the discussion about financial ratios in the article What Are Financial Ratios? and will now go further.


Financial ratios are calculated to analyse management effectiveness in employing capital, solvency and profitability. The information contained in the Income Statement and Balance Sheet is essential to obtain financial ratios.

Of course, it is crucial to know the nitty-gritty of these financial statements. Then you don’t have to read them from A to Z, rather look through several figures and this is it. It is not only “sales” value. And it is not only for one period.

Posted in: Business matters

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