whatis ratio analysis and methods of its calculation.
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Answer / sonali
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 ? | 15 Yes | 4 No |
Answer / ravichandra
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 ? | 12 Yes | 6 No |
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