Return on Equity
Return on Equity This ratio indicates the percentage of net profit to equity shareholders’ capital. The higher the ratio percentage,…
Return on Assets
Return on Assets Return on Assets ratio indicates how profitable a company’s assets are in generating revenue. This ratio is…
Return on Capital Employed
Return on Capital Employed Return on Capital Employed ratio is an indicator of the earning capacity of the capital employed…
Net Profit Ratio
Net Profit Ratio is the ratio of net profit after tax to net sales. It explains per rupee profit generating…
Operating Profit Ratio
Operating Profit ratio express the relationship between operating profit and sales and calculated as follows: Where Operating Profit = Net…
Gross Profit Ratio : Gross Profit Margin Analysis
The gross profit ratio tells gross margin on trading. It is the gross profit expressed as a percentage of total…
Profitability Indicator Ratios: Introduction
Profitability ratios are of utmost importance for a concern. These ratios give users a good understanding of how well the…
Cash Ratio
What is Cash ratio Cash Ratio is the ratio of a company’s cash and liquid assets to its current liabilities….
Quick Ratio Formula With Examples, Pros and Cons
The quick ratio, also known as the acid-test ratio, is a financial ratio used to measure a company’s short-term liquidity….
Liquidity Measurement Ratios: Introduction
If it is decided to study the liquidity position of the concern, then liquidity ratios are calculated. These ratios are…