Users of Ratio Analysis

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  • Users of ratio analysis
    • Management
      • want to know it is profitable
      • want to know if they can pay expenses on time
    • Employees
      • some may receive a share of company's profits
      • To set up work councils
    • Owners
      • if the management is making good use of the resources
    • Investors
      • if a profit is being made
      • if the level of return on their investment is comparable with other investment opportunities
    • Lenders
      • if the firm has the ability to make loan repayments
      • want to know how quickly the organisation can repay its loan
    • Suppliers
      • it they can pay their invoices on time
    • Customers
      • if the business is stable
    • Inland Revenue and Customs and Excuse
      • companies must pay corporate tax on profits made and must charge VAT on goods and services they sell
    • The Register of Companies
      • companies must send a copy of their accounts
    • Competitors
      • want to know about their sales
      • want to know about their customers


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