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Well i think for me All are important Analysis to show the financial position of an organization.
Current ratio:
Indicator of a firm's ability to meet short-term financial obligations, it is the ratio of current assets to current liabilities. Though every industry has its range of acceptable current-ratios, a ratio of2:1 is considered desirable in most sectors. Since inventory is included in current assets, acid test ratio is a more suitable measure where salability of inventory is questionable. Formula: Current assets ÷ Current liabilities.
Equity profit ratio:
In an annual time frame, the amount of net profit that a business will have after tax, and then divided by the amount of sales that the business has for that same annual time frame. Also called profit margin.
Fixed asset turnover ratio:
Measure of the productivity of a firm, it indicates the amount of sales generated by each dollar spent on fixed assets, and the amount of fixed assets required to generate a specific level of revenue. Changes in the this ratio over time reflect whether or not the firm is becoming more efficient in the use of its fixed assets. Formula: Sales revenue ÷ average fixed assets.
Inventory turnover:
Number of times a firm's investment in inventory is recouped during an accounting period. Normally a high number indicates a greater sales efficiency and a lower risk of loss through un-saleable stock. However, an inventory turnover that is out of proportion to industry norms may suggest losses due to shortages, and poor customer-service. The preferred method of computing inventory turnover is to compare the cost of sales (also called Cost Of Goods Sold or COGS) to average inventory (Cost of sales ÷ Average inventory). Another method, which compares net sales revenue to the inventory (Net sales revenue ÷ Inventory) is also used but it introduces the distortion of sales markup that is not documented in the inventory records. Also called inventory turns or stock turnover.
Gross profit margin:
A measure of a company's profitability that is expressed as a percentage of gross profit. It is calculated by dividing gross profit by revenue.
Agreed with the answer of abed hasan abdulleh othman
All ratios are important in analyzing performance of a company.
the importance of current ratio to measure the degree to with current assets cover current liabilities .a higher ratio indicates greater ability to pay current liabilities with current assets,thus greater liquidity
current assets = current assets /current liabilities
equity profit (return on equity ) measure the return made on the common shareholders' equity rather than return on total assets
ROE = NET INCOME/AVERAGE EQUITY
inventory turn over ratio measure the number of the times that inventory was sold during a year
inventory turn over ratios =cost of goods sold /average inventory
fixed assets turn over ratio it may be useful to determine the relationship between sales and the investment in fixed or total assets
fixed assets turn over ratio = sales /average net plant,property and equipment
gross profit margin ratio it measure the company's profitability which equal sales revenues minus the cost of goods sold
gross profit margin =sales- cost of sales
ALL ANSWER IMPORTANCE
