J&K Outfitters Ltd. Essay

The organization I am passing to berate about is J& international ampereK Outfitters Ltd. I go forth be explaining the advantages and the disadvantages of using symmetry analyse inwardly the melodic line, by the attend of using the proportion analyse it will show the pecuniary performance of the transmission line as it abide alleviate the investors to gain the inside health of the confedeproportionn.Each symmetry indoors the personal line of credit plays a different prospective e.g. The blood turnover ratio shows you how quickly a fraternity sells and replaces the nisuss which are the goods and materials that a personal credit line holds for the purpose of resale. The advantage of using this stock turnover ratio will help the investors to make a decision on earlier to invest in this business or no because it will show the health of the company. The other type of ratio I am going to talk about is the current ratio which provides the business amount of assets com pared to its liabilities which shows the business ability to leave its debts. With the help of this ratio the investors get the sentiment of will they get their money keystone if they will invest in that business.On the other side ratio fails to cross the potential of the company as they precisely offer inside to the business place situation as it wont give the future prediction of the business. For example, if the company is about to merge and acquire macro amount of capital the ratio will not erupt these new changes and so ratios cannot be the only measurements investors use to measure companies value, because this numbers do not reveal other key information such as industry changes and economy forces. some other disadvantage I am going to talk about of using ratio is that some ratio might intimate the company is performing well charm other indicates financial issues therefore investors need to assess multiple ratios to get the scene of the business stability which can help them to come to a conclusion rather to invest or not within that business. Ratios are beneficial to some parties so far not to the other, such as a bank might not administer giving a help or interest to the companies book to market ratio however, the financial investors will evaluate its level of depth ratio to see if the company is worth of a loan.