ABSTRACT

This chapter moves us closer to management accounting and fi nancial management as it focuses on techniques that can be used to analyse the fi nancial performance and stability of organisations. Much of the analysis can be conducted through the use of ratios, e.g., return on investment (ROI tells us the ratio of return to investment), and, as a consequence, we frequently refer to “ ratio analysis ” in a manner synonymous to fi nancial statement analysis.