types of ratios

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types of ratios..

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

types of ratios..

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

types of ratios..

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

types of ratios..

Ratios are classified into 4 types they are as follows:
a)Liquidity Ratios
b)Leverage or Capital Ratios
c)Profitablity Ratios
d)Turnover 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
Ratio.

 Is This Answer Correct ? 14 Yes 6 No

types of ratios..

1. Profitability Ratio
2. Activity Ratio
3. Solvency (Leverage) Ratio
4. Liquidity Ratio
5. Turnover Ratio

 Is This Answer Correct ? 11 Yes 9 No

types of ratios..

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
financial position.

 Is This Answer Correct ? 7 Yes 8 No

types of ratios..

Liquidity Ratio : provide information about the
organisation's ability to meet its short term financial
obligations.

Asset Turnover Ratio : how a firm efficiently utilizes its
assets.

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

types of ratios..

current ratios
leverage ratio
capital ratio

 Is This Answer Correct ? 3 Yes 10 No

types of ratios..

equity
liability
asset

 Is This Answer Correct ? 5 Yes 28 No

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