Different Kinds of Ratio Analysis<\/h2>\n<\/div>\n<\/div>\n

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• Liquidity Ratio<\/b>\u00a0facilitates to identify whether the company has enough capability to meet short term requirements. Current and Quick Ratios expose the assessment between Current Assets and Current Liabilities suggest for required decision making.<\/li>\n
• The\u00a0Profitability Ratios<\/b>\u00a0like Gross Profit Ratio, Net Profit Ratio and Operating Ratio give a picture of profitability position of the concern.<\/li>\n
• Long term solvency<\/b>\u00a0and the\u00a0leverage ratios<\/b>\u00a0such as Debt-Equity Ratio and Interest Coverage Ratio convey a firm\u2019s ability to meet the interest cost refunds schedules of its long-term responsibilities and show the proportions of debt and equity in financing of the firms.<\/li>\n
• Activity Ratios<\/b>\u00a0such as Inventory Turn Over Ratio, Debtor Turnover Ratio, Working Capital Turnover Ratio measure the efficiency with which the resources of a firm have been hired.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
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  <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

  Answer : Ratio Analysis is a powerful tool…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"passster_activate_protection":false,"passster_protect_child_pages":"","passster_protection_type":"password","passster_password":"","passster_activate_overwrite_defaults":"","passster_headline":"","passster_instruction":"","passster_placeholder":"","passster_button":"","passster_id":"","passster_activate_misc_settings":"","passster_redirect_url":"","passster_hide":"no","passster_area_shortcode":"","gtb_hide_title":false,"gtb_wrap_title":false,"gtb_class_title":"","gtb_remove_headerfooter":false,"footnotes":""},"categories":[8950],"tags":[9060,9067,195,9061,1740,5937,203,9062,8949,7386,9068,205,7379,9069,9070,9063,9071,9072,222,484,362,7412,196,9054,8405,9073,8408,9074,8983,8982,207,8981,366,204,9075,9076,9077,8977,9078,9055,9056,9057,9079,9058,9059,9080,9081,483,8980,8979,7495,200,9064,9065,9066,8984,9082,8978,15855],"class_list":["post-1236","post","type-post","status-publish","format-standard","hentry","category-accounting","tag-5-types-of-financial-ratios","tag-a-ratio-analysis","tag-accenture-interview-questions-and-answers","tag-accounting-ratios","tag-asian-paints-ltd-interview-questions-and-answers","tag-aveva-software-interview-questions-and-answers","tag-capgemini-interview-questions-and-answers","tag-classification-of-ratio-analysis-in-accounting","tag-csc-interview-questions-and-answers","tag-cts-interview-questions-and-answers","tag-debt-ratio-analysis","tag-dell-international-services-india-pvt-ltd-interview-questions-and-answers","tag-deloitte-interview-questions-and-answers","tag-different-kinds-of-ratios-in-banking","tag-financial-ratio-analysis","tag-financial-ratio-analysis-and-interpretation","tag-financial-ratios","tag-financial-ratios-for-banks-analysis","tag-flipkart-interview-questions-and-answers","tag-genpact-interview-questions-and-answers","tag-hcl-technologies-interview-questions-and-answers","tag-hdfc-bank-interview-questions-and-answers","tag-ibm-interview-questions-and-answers","tag-importance-of-ratio-analysis","tag-invesco-interview-questions-and-answers","tag-key-financial-ratios","tag-kpmg-global-services-private-limited-interview-questions-and-answers","tag-liquidity-ratio","tag-lodha-group-interview-questions-and-answers","tag-motilal-oswal-financial-services-interview-questions-and-answers","tag-mphasis-interview-questions-and-answers","tag-muthoot-finance-interview-questions-and-answers","tag-netapp-interview-questions-and-answers","tag-oracle-corporation-interview-questions-and-answers","tag-profitability-ratio-formula","tag-profitability-ratios","tag-quick-ratio","tag-randstad-india-pvt-ltd-interview-questions-and-answers","tag-ratio-analysis","tag-ratio-analysis-example","tag-ratio-analysis-example-problems","tag-ratio-analysis-formulas","tag-ratio-analysis-in-financial-management","tag-ratio-analysis-interpretation","tag-ratio-analysis-of-financial-statements","tag-ratio-analysis-project","tag-ratio-analysis-report","tag-reliance-industries-ltd-interview-questions-and-answers","tag-sbi-life-insurance-interview-questions-and-answers","tag-skp-group-interview-questions-and-answers","tag-sutherland-global-services-interview-questions-and-answers","tag-tech-mahindra-interview-questions-and-answers","tag-types-of-financial-ratios-and-their-formulas","tag-types-of-ratio-analysis","tag-types-of-ratio-analysis-with-examples","tag-unitedhealth-interview-questions-and-answers","tag-what-is-ratio-analysis","tag-yes-bank-interview-questions-and-answers","tag-zuari-interview-questions-and-answers"],"yoast_head":"\n