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What are main accounting ratios (also known as financial ratios)?

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Question ajoutée par Muhammad Hamid , Senior Financial Accountant , Al Rowad Trading Co LLC
Date de publication: 2015/07/24
Utilisateur supprimé
par Utilisateur supprimé

1. Liquidity Ratios

2. Profitability Ratios

3. Activity Ratios

4. Solvency or leverage Ratios

Yusuf Rampurawala
par Yusuf Rampurawala , Audit Supervisor , KPMG Lower Gulf

The main accounting rations widely used are:

(a) Current Ratio [porportion or ratio of current assets to current liabilities]

(b)  Return on Equity [Net distributable profit available to partners {divided by} Total equity of partners]

(c) Debt Service Coverage ratio (DSCR) [Loan installments {divided by} Net Profit before interest)

(d) Debt Equity Ratio [Total external debt {divided by} Total equity of partners]

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