Answer / sonali

Ratio analysis mean calculating and comparing various
ratios derived from a companies financial statements.

Types of ratios:
Leverage ratio: The extent of debt in companiy's capital
structure.

Profitability ratio: shows return on sales and capt employed

Operational ratio : company's efficiency of undertaking the
operations and utilization of assets

Liquidity ratio: Company's efficiency to meet the short
term obligations.

Solvency ratio: Company's efficiency to generate the cash
flows to meet its financial obligations.

Answer / ravichandra

Ratio is the numerical or an arithmatical relationship
between two figures. it's expressed when one figure divided
by another is called as a ratio.
Ratio's stands for the profitability of the firm.
Ratio's are are calculating in 5 type of methods.
-- Profitability Ratio
-- financial ratio.
-- leverage ratio.
-- coverage ratio.
-- turn over ratio.

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