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Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
measure of a firms ability to meet short term cash payments. bassically liquidity ratios show how good a business is at paying off its debts. hope this helps :)
Ratios
Equivalent ratios.
They are called equivalent ratios.
what tw ratios measure factors
Profitability is an important factor when running a business. Businesses calculate profitability in many ways, but figuring out profits after expenses is their goal. Profitable ratios is a measure of profitability that can be used to assess a business's ability to generate earnings.
these are ratios which analyze profitability of a company. higher ratios imply higher profitability and value of a company.
Operating ratios are types of ratios that serve as gauges of a company's operating success (or profitability) for a given period of time. They are also known as profitability ratios.
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios
there are many profitability ratios which are calculated. some of them are:profit marginoperating margintotal asset turnoverreturn on assets (ROA)return on equity (ROE)
1. Liquidity Ratios - Ability of the company to pay off debt 2. Activity Ratios - How quickly a firm can convert its non-cash assets to cash assets 3. Debt Ratios - Ability of the firm to repay long-term debt 4. Profitability Ratios - To Measure the firms use of its assets and control of its expenses to generate an acceptable rate of return 5. Market Ratios - To Measure the investor response to owning a company's stock and also the cost of issuing stock
Return on equity, Net Profitability ratio, Acid Test
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
to what extent does profitability of a firm measure its efficiency