Tag Archives | Types of Financial Ratios

4 Main Types of Financial Ratios | Financial Management

In general, financial ratios can be broken down into four main categories: 1. Profitability Ratios 2. Liquidity Ratios 3. Leverage Ratios 4. Activity Ratios. Type # 1. Profitability Ratios: The main objective of any organization is to earn profit. Profit is both a means and end to the organization. The profitability ratios are used to measure how well a business [...]

By |2017-03-07T09:28:01+05:30March 7, 2017|Financial Ratios|Comments Off on 4 Main Types of Financial Ratios | Financial Management
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4 Main Types of Financial Ratios (With Formula)

This article throws light upon the four main types of financial ratios. The types are: 1. Liquidity Ratios 2. Activity Ratios 3. Leverage Ratios 4. Profitability Ratios. Type # 1. Liquidity Ratios: Liquidity ratios reflect the firm's ability to meet scheduled short-term obligations. For the firm to remain alive, it must be able to pay its bills as they become [...]

By |2017-02-06T21:13:23+05:30February 6, 2017|Financial Ratios|Comments Off on 4 Main Types of Financial Ratios (With Formula)
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