One of the more useful methods of financial analysis for control purposes is known as ratio analysis.

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Ratio analysis is a commonly used financial analysis method to evaluate a company’s financial performance, efficiency and liquidity. Ratios help managers and stakeholders to identify areas of strengths and weaknesses in the company’s operations and finances, and to make informed decisions about resource allocation, investment, financing and risk management. Therefore, ratio analysis is an important tool for control purposes in financial management.

One of the More Useful Methods of Financial Analysis for Control