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Answer Posted / 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 |
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