Financial Accounting Ratios and Formulas: This is a collection of financial ratio formulas which can help you calculate financial ratios in a given problem. Analysis of Profitability: General profitability: Gross profit ratio = (Gross profit / Net sales) × 100 Operating ratio = (Operating
Analysis of Long Term Solvency
Analysis of long term solvency will tell us our power to repay all these long term loans through our long term resources. But these companies also face the losses because these companies do not care on long term solvency.