Evaluating financial position-operations of a company

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Ratios are certain measures useful in evaluating the financial position and operations of a company. It helps in analysing changes from previous year to current year and also comparing with other companies as well. It is essential for a company to know how well it is performing over the years and as compared to the other firms of the similar nature. Besides, it is also important to know how well its different divisions are performing among themselves in different years. Ratio analysis facilitates such comparison. The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage. The payout ratio is a key financial metric used to determine the sustainability of a company's dividend payments

Reference no: EM131016366

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