Users of Ratios

 Users of Ratios

Users of Ratios

Users of ratios can be classified into two groups – internal and external. Internal group consist of directors, shareholders, partners, managers, etc. External group consist of investors, lenders, suppliers, employees, labour union, customers, etc.

Different class of ratios will serve the purpose of different group. For example, suppliers are interested of liquidity ratios. The shareholders and managers are interested in all class of ratios.