Ratio Analysis Ratio analysis is one of the tools valuable for the analysis of financial statement.

It was first suggested to be used in 1919 by a German scholar, named Alexandra Wall. It is the most widely used method for the analysis of financial statements. o doubt contains the items relating to the !"# and the financial $osition of the concern will not be much of use, if they are considered inde$endently. %hey will be very useful only when one item is considered in the light of another item

Aging Schedule An accounting table that shows the relationshi$ between a com$any&s bills and invoices and its due dates. 'ften created by accounting software, aging schedules can be $roduced for both accounts $ayable and accounts receivable to hel$ a com$any see whether it is current on its $ayments to others and whether its customers are $aying it on time.

Trend Analysis An as$ect of technical analysis that tries to $redict the future movement of a stoc( based on $ast data. %rend analysis is based on the idea that what has ha$$ened in the $ast gives traders an idea of what will ha$$en in the future. %here are three main ty$es of trends) short*, intermediate* and long*term.

Karl Pearsons Correlation Co-Efficient +arl !earson&s !roduct*,oment -orrelation -oefficient or sim$ly !earson&s -orrelation -oefficient for short, is one of the im$ortant methods used in .tatistics to measure -orrelation between two variables. %he -orrelation between two variables / and 0, which are measured using !earson&s -oefficient, give the values between 11 and *1.

Schedule of Changes in Net Working Capital et wor(ing ca$ital is excess of current assets over current liabilities, the increase or decrease in the net wor(ing ca$ital can be found out by com$aring the current assets and current liabilities contained in the balance sheets of two following dates. 2or this $ur$ose, a statement is $re$ared which is called statement or schedule of changes in net wor(ing ca$ital. %his statement hel$s to identify the change in $osition of the wor(ing ca$ital.

While $re$aring the statement of changes in wor(ing ca$ital,the following $oints are ta(en into account. 3 Increase in current assets, increase in net wor(ing ca$ital 3 4ecrease in current assets, decrease in net wor(ing ca$ital 3 Increase in current liabilities, decrease in net wor(ing ca$ital 3 4ecrease in current liabilities, increase in net wor(ing ca$ital