Tag Archives | Ratio Analysis

Ratio Analysis

A ratio is an arithmetical tool that measures the relationship between two figures that are interdependent and interrelated with each other. Ratio is expressed by dividing one figure by another related figure. Ratio analysis is one of the powerful tools of financial analysis. It indicates a quantitative relationship between the figures and group of figures which are used for evaluation [...]

By |2021-04-24T17:32:19+05:30April 24, 2021|Financial Management|Comments Off on Ratio Analysis
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Classification of Ratios | Business | Financial Management

The ratio analysis is made under six broad categories as follows: 1.  Liquidity Ratios 2. Leverage Ratios 3. Asset Management Ratios 4. Profitability Ratios 5. Operating Ratios 6. Market based Ratios.  Category # 1. Liquidity Ratios: The liquidity ratios measure the liquidity of the firm and its ability to meet its maturing short-term obligations. Liquidity is defined as the ability [...]

By |2017-10-09T08:51:45+05:30October 9, 2017|Financial Ratios|Comments Off on Classification of Ratios | Business | Financial Management
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