describe liquidity ratio,solvency ratios, turnover ratios, profitability ratio s,market test ratios
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Answer:
Liquidity ratio : focus on frim ability to pay its short term debt obligations. The information you need to calculate these ratio can be found on your balance sheet which shows your assets liability and shareholders equity.
Solvency ratio : the solvency ratio represents the ability of a company to pay its long tem obligations this ratio compares your company noncashes expenses and net income after taxes to your total liabilities.
Turnovers ratio : the turnover ratio used most commonly are accounts receivable turnover accounts receivable turnover is at collecting credit debt.
Profitablity ratio : these are ratio that measure if a business activities are profitable. Frequently used ratio are the net profit ratio the contributions margin ratio indicates if your product or service are generating a profit after variable expense.