Q: What are the major categories for financial ratios?

Write your answer...

Submit

Still have questions?

Continue Learning about Basic Math

Asset quality ratios determines the quality of loans of a financial institution. If the ratio is high the more at risk the loans are. The lower the ratio, the less likely the loan would be at risk.

Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.

Ratios

financial . banking, stocks and shares, scientific, engineering, military, civil eng construction, automobile , medical, - everything, almost

Equivalent ratios.

Related questions

Liquidity, Profitability, Leverage, and Activity/Efficiency

Financial ratio analysis groups the ratios into categories which tell us about different facets of a company's finances and operations. An overview of some of the categories of ratios is given below.Leverage Ratios which show the extent that debt is used in a company's capital structure.Liquidity Ratios which give a picture of a company's short term financial situation or solvency.Operational Ratios which use turnover measures to show how efficient a company is in its operations and use of assets.Profitability Ratios which use margin analysis and show the return on sales and capital employed.Solvency Ratios which give a picture of a company's ability to generate cashflow and pay it financial obligations.

Following are major categories of accounting: 1 - Cost accounting 2- Financial accounting 3 - management accounting

Describe the four approaches to using financial ratios?

financial ratios

25

In financial analysis the analyst compute financial ratios to determine the financial health of an financial institutoin rather than simply studying raw financial data.

composite ratios are those which are compared between atleast two financial statements .

Investors look at financial ratios to understand how businesses are performing. They use this information to determine whether they would like to invest or not.

Investors look at financial ratios to understand how businesses are performing. They use this information to determine whether they would like to invest or not.

Analyzing financial ratios

financial ratios