Ratio analysis enhances our understanding of three basic attributes of performance: liquidity,profitability,and the ability to create shareholder value.

Question

Quizplus · Accepted Answer

Ratio analysis is a tool used to analyze a company's financial performance by examining its financial statements. It helps in understanding the liquidity, profitability, and the overall ability of the company to create shareholder value. Therefore, the statement is true.

Ratio Analysis Enhances Our Understanding of Three Basic Attributes of Performance