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Question
whatis ratio analysis and methods of its calculation.
 Question Submitted By :: Nagaraj
I also faced this Question!!     Rank Answer Posted By  
 
  Re: whatis ratio analysis and methods of its calculation.
Answer
# 1
Ratio analysis mean calculating and comparing various 
ratios derived from a companies financial statements.

Types of ratios:
Leverage ratio: The extent of debt in companiy's capital 
structure.

Profitability ratio: shows return on sales and capt employed

Operational ratio : company's efficiency of undertaking the 
operations and utilization of assets

Liquidity ratio: Company's efficiency to meet the short 
term obligations. 

Solvency ratio: Company's efficiency to generate the cash 
flows to meet its financial obligations.
 
Is This Answer Correct ?    2 Yes 0 No
Sonali
 
  Re: whatis ratio analysis and methods of its calculation.
Answer
# 2
Ratio is the numerical or an arithmatical relationship
between  two figures. it's expressed when one figure divided
by another is called as a ratio.
Ratio's stands for the profitability of the firm.
Ratio's are are calculating in 5 type of methods. 
-- Profitability Ratio
-- financial ratio.
-- leverage ratio.
-- coverage ratio.
-- turn over ratio.
 
Is This Answer Correct ?    0 Yes 2 No
Ravichandra
 
 
 

 
 
 
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