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How Variance Analysis and Ratio Analysis Can be useful by comparing it with other companies in the industry having different status large in size?

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Question added by Umair Javed , Deputy Manager Accounts & payables , Fazal Group Of Companies
Date Posted: 2015/12/24
Renu Jajoo
by Renu Jajoo , Finance Manager , Pyramid Pharma Limited

Variance Analysis and Ratio Analysis  will enable us to you determine the efficiency and performance of the organisation. ABC  limited might have a PATbucks, however PE ratio might be less than of DEF Ltd having PAT ofbuck only. Similarly Ratios relevant to Cash from Operations in your Cash flow can indicate the actual health card of the company. It will enable us to study the factors  and trends at the whole industry level and at individual organisation level.

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