Ratio Analysis
What is Solvency Ratios
Solvency Ratios Solvency Ratios In a popular sense, solvency means that a business is able to pay its liabilities as they become due. Insolvency …
Ratio Analysis
What is Liquidity Ratios
Liquidity Ratios Liquidity Ratio Liquidity ratios measure the ability of the firm to meet its short-term obligations. Short-term is conventionall…
Ratio Analysis
Classification of Ratio
Classification of Ratio Classification of Ratio Ratios are classified according to the need of different interested groups (e.g., shareholders, le…
Ratio Analysis
Users of Ratios
Users of Ratios Users of Ratios Users of ratios can be classified into two groups – internal and external. Internal group consist of directors, s…
Ratio Analysis
Standards of Comparison in Ratio Analysis
Standards of Comparison Standards of Comparison in Ratio Analysis There are broadly three based of comparison for ratios calculated f…
Ratio Analysis
Limitations of Ratio Analysis
Limitations of Ratio Analysis Limitations of Ratio Analysis 1. Financial Statement suffer from a number of limitations. When the ratios are constr…
cash flow statement
Short Questions of Cash Flow Statement
Short Questions of Cash Flow Statement Short Questions of Cash Flow Statement 1. What do you mean by cash flow statement? Answer-: Cash flow is…
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