definition of ratio-analysis-tool



Ratio Analysis Tool will help both you and any potential outside investor compare your business’s performance from one year to the next (for example, has gross profit grown or declined between years one and five?) and against other similar businesses (for example, does your business give as good a return on investment as others?).

The ratios can also be used as an aid in making future financial projections. For example, if you believe that it is prudent to hold the equivalent of a month’s sales in inventory, once you have made the sales forecast for future years, the projections for inventory in the balance sheet follow logically.

How to use the Ratio Analysis Tool

While making this tool, our main focus was to give you an easy way to find all your financial solution. Following color schemes will help you throughout the tool.

Color Scheme
Input = Light Yellow Cell
Output = Light Grey Cell

Download the File Ratio Analysis Tool



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