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.
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
No but percentages are ratios.
No but the equal ratios are called Equivalent Ratios.
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
quick ratios
Investors and financial analysts evaluating a firm's operating efficiency typically focus on efficiency ratios, such as inventory turnover, accounts receivable turnover, and asset turnover ratios. These ratios measure how effectively a company utilizes its assets and manages its operations to generate sales. Higher ratios indicate better performance in managing resources, while lower ratios may signal inefficiencies. Additionally, operating margin can also provide insights into the efficiency of the firm's cost management relative to its revenue.
you use various ratios that identify the time taken which then allow you to take actions.
Expense ratios for investment funds are typically paid by deducting a small percentage of the fund's assets on an annual basis. This fee covers the fund's operating expenses and is automatically taken from the fund's returns.
Operating lease are called off-balance sheet because in operating lease asset is not transferred to balance sheet as it is not in full ownership of business so in this way company enjoys to use assets without affecting asset turnover ratios.
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
Ratios
Expense ratios for investment funds are charged as a percentage of the fund's total assets, typically on an annual basis. This fee covers the fund's operating expenses, such as management fees and administrative costs, and is deducted from the fund's returns before they are distributed to investors.
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
equivalent ratios are different ratios that name the same comparison