Monday, February 13, 2017

Classification of financial ratios

Liquidity Ratios: The capacity of a business to pay its fleeting obligations is habitually alluded to as here and now dissolvability position or liquidity position of the business.

Productivity ratios:Profitability proportions measure the proficiency of administration in the work of business assets to procure benefits. These proportions show the achievement or disappointment of a business endeavor for a specific timeframe.

Movement ratios:Activity proportions (otherwise called turnover proportions) measure the productivity of a firm or organization in creating incomes by changing over its generation into money or deals.

Dissolvability ratios:Solvency proportions (otherwise called long haul dissolvability proportions) measure the capacity of a business to get by for a drawn out stretch of time. These proportions are vital for stockholders and leasers.

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