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Fabm Ratio Analysis Ass.
Fabm Ratio Analysis Ass.
Fabm Ratio Analysis Ass.
Liquidity Ratios
Working Capital =
Current Assets – Current Liabilities
*there must have enough current assets to pay for the current
liabilites
Current Ratio =
Current Assets / Current Liabilities
a. RETURN ON ASSETS =
Profit / Average Total Assets
* It helps to determine whether assets are maximized to generate profit.
b. RETURN ON EQUITY =
Profit / Average Stockholders Equity
* Profitability of the business is measured based on the investments of the owners.