Finance

[Name of the Institute]

Finance

Introduction

Profitability Ratios

Profitability ratios are the ratios that measure the ability of an organization for generating the cash flow relative to some metrics that is often being related with the invested amount in the organization. Profitability ratios indicate the financial health of an organization.

Liquidity Ratios

These ratios indicate the availability of the cash in the company and the marketable securities against the outstanding debt. These ratios measure the ability of the company to pay off their short term debts. The high the liquidity ratio of the firm indicates the low risk for the default of the organization.

Efficiency Ratios

These ratios measures ...