Explain various ratios? 1) liquidity ratios 2) leverage ratios 3)efficiency ratio 4) profitability ratios and 5) market value ratios 6) working capital ratio 7) quick ratio 8) earning per share 9) price to earning ratio 10) debt to equity ratio 11) return on equity 12) debt to capital

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Accepted Answer

Various financial ratios are used to analyze different aspects of a company's performance and financial health.

Liquidity ratios measure a company's ability to meet short-term obligations (e.g. current ratio, quick ratio)
Leverage ratios assess the level of debt a company has taken on (e.g. debt to equity ratio, debt to capital)
Efficiency ratios evaluate how well a company utilizes its assets to generate revenue (e.g. asset turnover ratio)
Profitability ratios indicate a company's ability to generate profit relative to its revenue, assets, or equity (e.g. return on equity)
Market value ratios reflect the market's perception of a company's value (e.g. price to earnings ratio)
Working capital ratio measures a company's ability to cover its short-term liabilities with its short-term assets
Earnings per share shows the amount of profit allocated to each outstanding share of a company's common stock

Explain various ratios? 1) liquidity ratios 2) leverage ratios 3)efficiency ratio 4) profitability ratios and 5) market value ratios 6) working capital ratio 7) quick ratio 8) earning per share 9) price to earning ratio 10) debt to equity ratio 11) return on equity 12) debt to capital

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