How to find Data for Ratio Analysis
Jennifer edwards In order to conduct the analysis of financial ratio and to calculate financial ratio of a company we need to acquire data that can be used to conclude specific financial…
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…
Tangible Common Equity Ratio
Tangible common equity ratio is a financial figure that is used to show financial stability of a bank or some other financial institute. This figure show the amount of loss…
Debt Service Coverage Ratio
Debt Service Coverage ratio is a financial term that means the total amount of cash flow that is available to pay off the annual interest and principle payments accumulated on…
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…
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…
Limitations of Ratio Analysis
Ratio analysis is one of the best tools to build a picture of the financial position of a particular firm. Different entities such as credit analyst, stock analyst and lenders…
Defensive Interval Ratio
Defensive interval ratio is a variation of the quick ratio. The ratio uses the same figures used by the quick ratio to determine whether a business has an ability to…
Sales to working Capital Ratio
In order to generate and maintain sales a business needs to invest some of its working capital. This working capital is invested in accounts receivable and the inventory of the…
Sales Backlog Ratio
The Sales Backlog Ratio is a financial measurement of the ability of a business to maintain the current level of the sales of the business. This ratio is recorded on…
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…
Net Profit Ratio
The Net profit ratio is the financial figure that shows the net profit gained by the business after paying the taxes. It can also be defined as the ratio between…
Cash Coverage Ratio
Cash coverage ratio can be defined as the amount of cash available in hand in order to pay the interest expense of the business. This ratio shows the amount of…
Debt Service Coverage Ratio
The debt service coverage ratio is a ratio that is related to the revenue generating property. This is the measure of ability of the property to generate so many revenues…
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…
Interest Coverage Ratio
As the name indicates interest coverage ratio is the ratio that depicts the ability of a company to cover its interest expense. This is the ratio that shows whether a…
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…
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…