أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
I leave the answer experts, specialists in this field.
1. Gross profit margin
2. Operating profit margin
3. Net profit margin
4. Return on assets (ROA)
5. Return on equity (ROE)
current ratio , quick ratio , liquidity ratio , market capitalization raio ,
1. Debtors vs creditors
2 . Returns on investment.
3. Cash Flow
Cash Flow and Balance Sheet ratios
All financial ratios are efficient to some extent.
Its strength and weakness is discretion of its user's persception.
Eg.; Investors vs Creditors
First Working Capital Ration.
Second Liquidty Ratio.
Third compare those ratios to same ratios in other similar business in similar size.
In my opinion, it's Debt-to-equity ratio and it should be equal to 1 or less than 1.
Liquidity ratio in which current ratio and quick ratio plus working capital are very important . As Liquidity ratio will assist in analysing weekness and strengh of observed company. Current ratio will demonstrate that how many current assets a company owns to disburse the concrened current laibilities. 2:1 is actullay a very good current ratio in this outlook.
Acit-test ratio is known as quick ratio and it measures current assets (current assets minus stock of inventory) deivided by current liabilities. This ratio highlights the quick liquidity of the organization.
“Acid-test ratio” is also known as quick ratio. “it measures current (short term) liquidity and position of the company”. It weight current assets of the company against the current liabilities which result in the ratio that highlights the liquidity of the company.