Ratio analysis and Ratio covenant: Difference between pages

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Ratio analysis is a method of financial analysis based on financial accounting ratios; comparing various accounting items with each other as ratios.
An undertaking given in a loan agreement by the borrower that it will operate its business within a financial constraint specified in the form of balance or other financial ratios.
 
For example, Days sales outstanding.
 
 
2.
 
The term 'ratio analysis' is also used to describe a broader quantitative analysis, also including relevant operational and market measures in the various ratio calculations, as well as accounting items.
 
For example, Price to earnings ratios.




== See also ==
== See also ==
* [[Days sales outstanding ]]
* [[Loan agreement]]
* [[DuPont analysis]]
* [[Financial analysis]]
* [[Price to earnings ratio]]
* [[Profitability]]
* [[Profitability ratio]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 14:20, 23 October 2012

An undertaking given in a loan agreement by the borrower that it will operate its business within a financial constraint specified in the form of balance or other financial ratios.


See also


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