... answers.Investors would like to find out the earnings per share or the dividend per share ratios which are strongly considered as they help them to make a sound choiceThe technique of ratio analysis provides a sensible picture of the performance of the business. * Ratio analysis allows identification of trends and more meaningful interpretation of the data. Ratios are generally compared with the previous years data as well as the competitors data which is the major advantage of its usage. * A potential shareholder is generally keen in finding out the profit after tax of the firm and how much is the return on capital employed. * It gives a quick and simple way to look at the business as a whole, and makes it easy to judge the reason the ratios are used for. * There are several approaches to analyse ratios and the purposes they serve: * Usage of time to compare ...

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