Tag Archives | Financial Ratio Analysis

Balance Sheet and Revenue Statement Ratios

This article throws light upon the top two types of balance sheet and revenue statements ratios. The types are: 1. Turnover or Velocity Ratios 2. Profitability Ratios. Type # 1. Turnover or Velocity Ratios: (a) Stock/Inventory-Turnover Ratio: This ratio shows the relationship between inventory at close of the business and the overall turnover. In other […]

Financial Ratio Analysis: Definition, Importance and Limitations

After reading this article you will learn about Financial Ratio Analysis:- 1. Introduction to Financial Ratio Analysis 2. Definition of Financial Ratio Analysis 3. Importance 4. Limitations 5. Interested Parties. Contents: Introduction to Financial Ratio Analysis Definition of Financial Ratio Analysis Importance of Financial Ratio Analysis Limitations of Financial Ratio Analysis Interested Parties of Financial […]

Revenue Statement Ratios

This article throws light upon the top three types of revenue statement ratios. The types are: 1. Expenses Ratio 2. Earning Ratios 3. Profit Cover Ratios. Type # 1. Expenses Ratio: (a) Fixed Expenses to Total Cost Ratio: It indicates the idle capacity in the organisation. If this ratio gradually increases without, however, a corresponding […]

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