Users of Ratio Analysis
- Created by: ofields755
- Created on: 03-04-17 09:22
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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
- Management
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