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Management Studies

What are categories of ratios for financial position and performance?

Usually, there are four main categories of ratios every attempting to measure the financial position and performance of a firm. These are as follows:

1. Liquidity Ratios: It is reflect the firm’s capability to meet scheduled short time obligations

2. Activity Ratios: It tells how the firm is managing different classes of assets.

3. Leverage Ratios: It is showing how much debt the firm has used to finance its investments.

4. Profitability Ratios: It is designed to reflect the profitability of the firm.

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9578190

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