Abstract:
Financial ratio analysis is a very beneficial tool for the evaluation and comparison of financial statements of different commercial banks. Financial ratio analysis is categorized in different groups like profitability ratios, liquidity ratio, market ratio and income over expenses ratio. These ratios can be used to compare the performance of the one company with the industry. Financial ratios can help to find out at which side the firm has strength and what is the dimness of the company. These ratios can also be used for the improvement decision or we can say that for the trend analysis of the organization. Trend analysis explains that in which areas the performance needs to be improved. Trend analysis tells us what happened in the past and what will be happened in the future. It also explained which resources have been utilized and where these resources will be utilized. In the trend analysis historical data is used to predict the future.
