Financial ratios quantify many aspects of a business and are an integral part of financial statement analysis. To compare the company’s performance, position and stability we have used several ratios. According to the financial aspects of the business we have categorize the ratios as below.
- Profitability Ratios - measure the firm's use of its assets and control of its expenses to generate an acceptable rate of return.
- Return on investment - performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.
- Liquidity Ratios - measure the availability of cash to pay debt.
- Efficiency Ratios - used to analyze how well a company uses its assets and liabilities internally.
- Gearing Ratios - measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds.
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