Ratio Analysis
Published:
Analysis financial statements using ratio
1. 5 types of ratios
1. Profitability ratio:
- Ability to generate profit
2. Activity ratio:
- Efficiency in using assets to generate revenue
3. Liquidity ratio:
- Ability to pay short-term debt
4. Solvency ratio:
- Ability to pay long-term debt
5. Valuation ratio:
- Investment in common equity

