Question

what is ratio and explain the types of ratios

Answer 1

The relation between two numbers which shows how much bigger one quantity is than an other .

Types :-

liquidly ratio
activity ratio
capital ratios

Answer 2

A ratio analysis is a quantitativeanalysis of information contained in a company's financial statements. Ratio analysis is used to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency.
The five (5) major categories in the financial ratios list include the following :

Liquidity Ratios.

Activity Ratios.

Debt Ratios.

Profitability Ratios.

Market Ratios.

There are three (03) important liquidity ratios.

Current Ratio. The current ratio (CR) is equal to total current assets divided by total current liabilities. ...

Quick asset Ratio. ...

Cash Ratio. ...

Average Collection Period. ...

Inventory / Stock Turnover. ...

Cash Conversion Cycle. ...

Fixed asset Turnover. ...

Total Asset Turnover.

The liquidity ratios attempt to measure this ability of a company.

Acid-Test Ratio. The term “Acid-test ratio” is also known as quick ratio. ...

Cash Ratio. ...

Current Ratio. ...

Net Working Capital. ...

Quick Ratio. ...

Working Capital. ...

Working Capital Ratio.