Financial ratios analysis means measuring financial figures and indicating weaknesses strengths to create a profitable business. Throughout, it measures the ability to manage that effectively enough by the figures contained in the financial statements for the ratio to be used in a comparative analysis. Typically, the type of financial ratios are as follows:1. the liquidity ratio (Liquidity Ratios). 2. the ratio of the debt (Debtor Leverage Ratios). 3. ratio of profitablity (Profitability Ratios). 4. the ratio shows the ability to perform the job (Efficiency Ratios Activity Ratios or)
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