Ratio Analysis as a Tool for Performance Evaluation

Ratio Analysis as a Tool for Performance Evaluation is a report that highlights the necessity of the ratio analysis that can be a tool for performance evaluation. Performance is one of the most important factors that are essential for the employees. The ratio analysis is suitable for comparing the line item data with the financial statements of the organization. The various factors like profitability, operational efficiency, liquidity, and solvency can be taken into account. The report can emphasize how the ratio analysis can be useful for the evaluation of the performance of the employees in the organization.