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A ratio ‘expresses the relationship of one number to another number’. It involves analysing a company’s financial statements according to specific ratios, for example, current ratio, which is current assets divided by current liabilities; measuring a company’s ability to pay current liabilities from current assets (Horngren et al, 2008, p93-4)...
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A ratio ‘expresses the relationship of one number to another number’. It involves analysing a company’s financial statements according to specific ratios, for example, current ratio, which is current assets divided by current liabilities; measuring a company’s ability to pay current liabilities from current assets (Horngren et al, 2008, p93-4)...
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