Financial Ratios

Financial ratio analysis is required to understand business financial position and financial performance. Major usage of these analysis are :

1)      Taking decisions related to investment,

2)      Comparing 2 business when they are of different size

3)      To detail out profitability, efficiency and quality of business from different perspectives

4)      To keep a tab of changes taking place in the business in due course of time

These ratios have been broadly categorized into 6 categories :

1)      Liquidity Measurement Ratios

2)      Profitability Indicator Ratios

3)      Debt Ratios

4)      Operating Performance Ratios

5)      Cash Flow Indicator Ratios

6)      Investment Valuation Ratios

Credits - Vineet Kumar(IIFT-K 2014-16)