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Explain the significance of following- 1. Profitability ratio 2. Liquidity ratios 3. Leverage ratios. Explain in detail.

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Accounting

Explain the significance of following-

1. Profitability ratio

2. Liquidity ratios

3. Leverage ratios.

Explain in detail.

Answer & Explanation Solved by verified expert
4.2 Ratings (511 Votes)
Explain the significance of following 1 Profitability Ratio Profitability ratios are ratios used to assess whether the company is able to generate profits or not These ratio tells the users whether the company is able to make profits from the revenue generated and how much percent profit the company is able to make from the revenues generated This is done by calculating the gross profit ratio and net profit ratio Calculating ratios like return on assets the investors are able to analyse the    See Answer
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Explain the significance of following-1. Profitability ratio2. Liquidity ratios3. Leverage ratios.Explain in detail.

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