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Earn +20 ptsQ: Who uses solvency ratios?
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What are solvency ratios?
Solvency ratios are rations that indicate the ability of a company to meet its long-term obligations on a continuing basis and thus to survive over a long period of time.
How many types of ratio?
Generally, there are 4 types of finance ratios, (if thats what you want). (A) LIQUIDITY RATIO (B) LONG TERM SOLVENCY AND STABILITY RATIO (C) PROFITABILITY & EFFICENCY RATIOS (D) INVESTORS OR STOCK MARKET RATIOS.
What are equivlent ratios?
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
What is the relationship between ratio and proportion?
Ratio uses 2 similar things and compares them while proportions uses ratios to compare, they both compare objects or items ------ Pao Xiong
What are the three types of ratios?
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
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