FINANCIAL RATIOS

Financial ratios



FINANCIAL RATIOS

Meaning of Ratios

Current ratio and acid test ratio tells the ability of the company to meet it short term obligations. Average receivables tell about how much the company will receive from its sales. Debt to total asset is about percentage of debt company has taken. Profit margin tells about the company's net earnings.

Comparison of year 2010 with 2009

Current Ratio of 2010 is lower than the ration in 2009. This is not a good sign for the HAMDI Audio Video as their current assets are reducing with a significant pace. The Acid test ratio has also decreases ...