Ratios

Ratios

Introduction

Financial ratios are very valuable indicators for any company. They indicate clear picture of the financial performance and financial situation of the company within the industry. In short, relationship that shows something regarding the activities of the company, like ratio between the current asset of the company and its current liability or among the debtors and turnovers. On the whole, ratios can be determined from the information that is available in the financial statements.

Discussion

In this paper, we will discuss the four major financial ratios of the company and its importance.

Liquidity Ratios

In order to see how smoothly the company can ...