'It is a technique which involves regrouping of data by application of arithmetical relationships.' Identify the technique and state any two…

• Ratio Analysis • Objectives of Ratio Analysis (any two) $\displaystyle 1$) To know the areas of the business which need more attention; $\displaystyle 2$) To know about the potential areas which can be improved with the efforts in the desired direction; $\displaystyle 3$) To provide a deeper analysis of the profitability, liquidity, solvency and efficiency levels in the business; $\displaystyle 4$) To provide information for making cross-sectional analysis by comparing the performance with the best industry standards $\displaystyle 5$) To provide information derived from financial statements useful for making projections and estimates for the future.