Accountancy, asked by pk136231, 4 months ago

what are the factors must be considered in financial Ratio.​

Answers

Answered by kumarianjali66761
0

Answer:

Profits: Include gross profit margin, operating profit margin and net profit margin for the company. Operational Efficiency: Include the accounts receivables turnover and inventory turnover. Capital Efficiency and Solvency: Include return on equity and debt to equity ratios.

Answered by parmartwinkle505
0

Answer:

Revenues. Revenues are probably your business's main source of cash. ...

Profits. If you can't produce quality profits consistently, your business may not survive in the long run. ...

Operational Efficiency. ...

Capital Efficiency and Solvency. ...

Liquidity.

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