The Ratio Analysis

The field of financial management requires from financial executive to measure the performance by using best tools. The effectiveness of ratio analysis cannot be neglected because of its wide contributions in measuring financial performance. The aim of this research study is to analyze the effectiveness of ratio analysis, as important tool for measuring the performance of organization by applying the ratio analysis on commercial banks of Pakistan. The general tools of ratio analysis attempts to measure the financial performance in terms of profitability, solvency, asset management (efficiency), debt management, shareholders and market.

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