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    A Ratio Is A Financial Ratio That Indicates Whether A Company's Will Be Sufficient To Meet The Company's Obligations When They Become Due

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    Ashik Nv
    The document discusses two types of financial ratios: 1) Liquidity Ratios, which indicate whether a company's current assets will be sufficient to meet current liabilities. Examples given are the Current Ratio and Quick Ratio. Data from 2018-2015 is shown in a table. 2) Profitability Ratios, which evaluate a company's ability to generate income compared to expenses. The document states Profitability Ratios represent the final result of a company but does not provide any formulas or data for Profitability Ratios.

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    A Ratio Is A Financial Ratio That Indicates Whether A Company's Will Be Sufficient To Meet The Company's Obligations When They Become Due

    Uploaded by

    Ashik Nv
    7 views2 pages
    The document discusses two types of financial ratios: 1) Liquidity Ratios, which indicate whether a company's current assets will be sufficient to meet current liabilities. Examples given are the Current Ratio and Quick Ratio. Data from 2018-2015 is shown in a table. 2) Profitability Ratios, which evaluate a company's ability to generate income compared to expenses. The document states Profitability Ratios represent the final result of a company but does not provide any formulas or data for Profitability Ratios.

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    The document discusses two types of financial ratios: 1) Liquidity Ratios, which indicate whether a company's current assets will be sufficient to meet current liabilities. Examples given are the Current Ratio and Quick Ratio. Data from 2018-2015 is shown in a table. 2) Profitability Ratios, which evaluate a company's ability to generate income compared to expenses. The document states Profitability Ratios represent the final result of a company but does not provide any formulas or data for Profitability Ratios.

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    7 views2 pages

    A Ratio Is A Financial Ratio That Indicates Whether A Company's Will Be Sufficient To Meet The Company's Obligations When They Become Due

    Uploaded by

    Ashik Nv
    The document discusses two types of financial ratios: 1) Liquidity Ratios, which indicate whether a company's current assets will be sufficient to meet current liabilities. Examples given are the Current Ratio and Quick Ratio. Data from 2018-2015 is shown in a table. 2) Profitability Ratios, which evaluate a company's ability to generate income compared to expenses. The document states Profitability Ratios represent the final result of a company but does not provide any formulas or data for Profitability Ratios.

    Copyright:

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    of 2

    TERM PAPER( first week)

    Ratio Analysis:

    Explain different types of ratios:

    1.Liquidity Ratios:

    A liquidity ratio is a financial ratio that indicates whether a company's current assets will be
    sufficient to meet the company's obligations when they become due.

    Formula: Current Assets +Inventories / Current Liability

    Table No: 1

    Liquidity Ratios

    Years Current Quick ratios Absolute DU Point


    Ratio Liquid Ratio Ratios
    2018 2.456123 0.4316352

    2017 4.837773 5.612348

    2016 5.36152 4.668919

    2015 2.32652083 0.24253473

    Mean
    SD
    Range
    CV
    Source:

    Interpretation:

    2. Profitability Ratios

    Profitability ratio is used to evaluate the company’s ability to generate income as compared to its
    expenses and other cost associated with the generation of income during a particular period. This ratio
    represents the final result of the company.

    Formula:

    Table No: 2
    Profitability Ratios

    Years Current Quick ratios Absolute DU Point


    Ratio Liquid Ratio Ratios
    2018
    2017
    2016
    2015
    Mean
    SD
    Range
    CV
    Interpretation:

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