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Fundas : Understanding Financial Ratios – Part 1


One of the most important task that a fundamental analyst undertakes while analyzing companies is going through and understanding the financial statements of companies - Balance Sheet, Profit and Loss and Cash Flow Statements. One of the effective ways of interpreting the numbers posted in the financial statements is  a) preparing and b) understanding financial ratios. The source for preparing financial ratios are the three financial statements stated above . . .

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