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Answer / yeshu
a ratio is a arithmatical relationship of one number to
another.ratios are basically of four type:
1 liquidity ratio:
measures the short term solvency or
financial position of a firm. short term paying capacity of
and ability to meet its current obligations.like current
ratio,liquid ratio etc.
2 leaverage ratio:
measures the firm ability to pay interest
cost and repayment of long term obligation. like debt
equity ratio, interest coverage ratio
3. activity ratio:
measures the efficiency with which the
resources of a firm have been employed. like stock turnover
ratio,debtor turnover ratio.
4. profitability ratio:
mesures the overall performance and
effectiveness of the firm. like net profit ra
|Is This Answer Correct ?||91 Yes||11 No|
Answer / nikhil k
Ratios are the arithmetic relationships between two variables.
Eg: Liquidity Ratio, leverage Ratio, Coverage Ratio,
Profitability Ratio etc.
|Is This Answer Correct ?||20 Yes||6 No|
Answer / kumar
Raio Analysis is one of the most powerful tools of
financial analysis. It is used as a device to analyze and
interript the financial health of enterprise. just like
docter examins a patient body temperature like this etc.
|Is This Answer Correct ?||26 Yes||15 No|
Ratios are classified into 4 types they are as follows:
b)Leverage or Capital Ratios
a) Liquidity Ratios are as follows i) Current Ratio; ii)
Acid-Test Ratio or Quick Ratio;
b) Leverage or Capital Ratios are as follows i) Debt -
Equity Ratio; ii) Debt - Asset Ratio; iii) Interest
Coverage Ratio; iv) Debt Service Coverage Ratio;
c) Profitablity Ratios i) Gross Profit Ratio; ii) Net
Profit Ratio; iii) Return on Total Assets; iv) Return on
Capital Employeed; v) Return on Shareholders Equity;
d) Turnover Ratios i) Inventory Turnover Ratio; ii)
Debtor's Turnover Ratio; iii) Average Collection Period;
iv) Fixed Assets Turnover Ratio; v) Total Assets Turnover
|Is This Answer Correct ?||14 Yes||6 No|
Answer / rahul mahajan
1. Profitability Ratio
2. Activity Ratio
3. Solvency (Leverage) Ratio
4. Liquidity Ratio
5. Turnover Ratio
|Is This Answer Correct ?||11 Yes||9 No|
Answer / firstname.lastname@example.org
ratio is refers to the numerical or quantitative
relationship between two items of financial statements.we
can find from the ration analysis strength and weakness of
the firm as well as historical performance and current
|Is This Answer Correct ?||7 Yes||8 No|
Answer / srinivas annavarapu
Liquidity Ratio : provide information about the
organisation's ability to meet its short term financial
Asset Turnover Ratio : how a firm efficiently utilizes its
Financial leverage ratio : measure the extent to which firm
is using longterm debt.
Profitability ratio : several different measures of the
success of the firm @ generating profits.
Dividend policy ratio : indicates dividend policy of the
firm and prospects for future growth.
|Is This Answer Correct ?||4 Yes||8 No|
Answer / venkateswarlu
|Is This Answer Correct ?||3 Yes||10 No|
Answer / guest
|Is This Answer Correct ?||5 Yes||28 No|
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