Accounting Ratios and their importance in analysing the health of a porject

Ratios analysis is important in determining the feasibility of a project.
if the ratios are much below the standards then the planning has to be looked into afresh. and the whole business plan has to be redrawn so as to give better returns and healthy return on investment.

These ratios will vary from industry to industry.


Some of the important ratios are
Assets turnover ratio
Current assets to current liabilities ratio
Gross Profit turnover ratio
Return on capital employed

​Maximum Permissable Bank Finance.

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