Accounting Ratio’s

Accounting ratios formula , advantages and disadvantages with complete accounting ratio analysis. All profitability ratios , liquidity ratios and financial ratios are covered in Accounting Ratio’s category.

Sacrifice Ratio

Sacrifice Ratio can be defined as an economic ratio that is used to measure the costs that are associated with the process of slowing the economic growth in order to stabilize or coup up or change the inflation trends. In order to calculate this

Overhead Ratio

Overhead ratio is the ratio that is directly related to the operating expense of the business. Operating expenses are the expenses that occur during the day to day routine of the business. We cannot compare operating expense directly to the operating income of the

Working Ratio

The working ratio is a financial figure that shows either a business has an ability to cover its ongoing operating expenses within a given accounting period. Working ratio like many other financial ratios indicates the financial health of the business however it mostly yields

Net Worth Ratio

Net worth ratio is the ratio that shows the net worth of the investment of an investor made within the company. This ratio depicts the return that the shareholder is going to receive on their investment assuming that all the profit earned by the

Gross Profit Ratio

Gross profit ratio is the ratio that shows the total amount of profit that will be earned by a company by selling its products and services. The gross profit ratio is the ratio that shows the total profit before subtracting administrative expenses, operational expense

Gearing Ratio

Gearing ratio can be defined as the ratio a company’s debt to that of its equity. This is also called as debt to equity ratio. High gearing ratio means that ratio of debt to equity is high and vice versa. Sometimes this ratio is

Acid Test Ratio

The acid test ratio is a quick indicator of the financial position of a firm. This ratio shows weather a firm has adequate amount of short term assets required to fulfill its short term liabilities without selling its inventory to fulfill short term liabilities.
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