Tag Archives | Classification of Ratios

5 Main Classification of Ratios (With Formula)| Financial Accounting

This classification is based on the purpose for which an analyst computes these ratios. For easy understanding and to achieve the purpose of ratios effectively, ratios may be classified as:- 1. Profitability Ratios 2. Coverage Ratios 3. Turnover Ratios/Activity Ratio 4. Financial Ratios/Liquidity Ratio 5. Leverage Ratios/Long-Term Solvency Ratios. These are discussed one by one below: 1. Profitability Ratios: The [...]

By |2018-08-01T10:47:23+00:00August 1, 2018|Ratio|Comments Off on 5 Main Classification of Ratios (With Formula)| Financial Accounting
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Classification of Ratios | Accounting

In this article we will discuss about the classification of ratios in accounting. The accounting ratios may be classified on the following bases leading to somewhat overlapping categories: (A) Classification by Statements: The Traditional classification is based on those statements from which information is obtained for calculating the ratios. The ratios are classified as follows: (B) Classification by Users: This [...]

By |2017-02-06T20:58:56+00:00February 6, 2017|Financial Analysis|Comments Off on Classification of Ratios | Accounting
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