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.

Activity Ratios

What are Activity Ratios? Activity ratio is the ratio or the measure of the ability of an organization to convert the accounts of the balance sheet into revenues. Activity ratio presents a clear picture of a company’s ability to convert its assets, liability and

Back End Ratio

Back end ratio is the calculation of the part of the income of an individual or a business that is used to pay the debts. From an individual point of view the monthly debt of an individual include credit card payments, loan payments, home

Efficiency Ratio

Efficiency ratios are the measure of the degree of the efficiency of a business. Each business runs while utilizing its assets and managing its liabilities. Efficiency ratios of a business are calculated to show how well a business is using its assets and how

Key Ratio

In order to get a clear picture of the current financial position of a company a tool that is used is called key ratio. It is a ratio that gives us a clear idea about the financial status of a business or an organization.

Bond Ratio

  A bond ratio is one of the most important ratios in accounting and express the leverage associated with the issuer of the bond. In other words bond ratio can be defined as the percentage of the capitalization of a company that is represented

Contribution Margin Ratio (CM Ratio)

Learning Objectives: Define and explain contribution margin ratio. Calculate CM ratio. What is the importance and benefit of calculating CM ratio? Contribution margin percentage or average  Definition of Contribution Margin Ratio Formula Calculation Importance Review Problems Contribution Margin Ratio Calculator Definition of Contribution Margin Ratio: The contribution margin as a percentage of total

Gross Profit Ratio (GP Ratio)

Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. It expresses the relationship between gross profit and sales. Components: The basic components for the calculation of gross profit ratio are gross profit and net sales.Net sales means that sales minus sales returns. Gross profit would be the difference betweennet sales and cost of goods sold. Cost of goods sold in

Net Profit Ratio (NP Ratio)

Definition of net profit ratio: Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as percentage. Components of net profit ratio: The two basic components of the net profit ratio are the net profit and sales. The net profits are obtained
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