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 words, it indicates the number [...]

By |2016-06-18T06:57:30+00:00June 18, 2016|Financial Analysis|Comments Off on Balance Sheet and Revenue Statement Ratios

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 Ratio Analysis 1. Introduction to [...]

By |2016-06-18T06:57:30+00:00June 18, 2016|Financial Ratio Analysis|Comments Off on Financial Ratio Analysis: Definition, Importance and Limitations

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 increase in fixed assets, the [...]

By |2016-06-18T06:57:30+00:00June 18, 2016|Financial Analysis|Comments Off on Revenue Statement Ratios
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