# Tag: ratio analysis

## Overall Profitability Ratios | Explanation | Formulae | Significance

Overall Profitability Ratios Profit is used as a yardstick to measure the profitability of any business concern. Generally, an analyst calculates overall profitability ratios before giving any recommendation

## Market test or Valuation ratio | Explanation | Formula

Market test or Valuation Ratios The followings are the market test or valuation ratios. Dividend Yield Ratio. Dividend Payout Ratio or Payout Ratio. Price Earning Ratio or P/E

## Creditors or Payable turnover Ratio | Formula | Significance

Creditors or Payable turnover Ratio A business concern may not purchase its all items on cash basis. Sometimes, there may be credit purchase. This ratio is calculated to

## Average Collection Period Ratio | Formulae | Significance

Average Collection Period Ratio is otherwise called as Average Age of Debtors. The term average collection period refers to the number of days waited to receive the amount

## Debtors or Receivables Turnover Ratio | Formula | Significance

Debtors or Receivables Turnover Ratio It is otherwise called as Debtors Velocity. All the goods can not be sold on cash. There may be some credit sales. The

## Defensive Interval Ratio | Formula

What is Defensive Internal Ratio? Defensive Internal Ratios is otherwise called as Basic Defensive Interval Ratio and Internal Measure Ratio. This ratio is calculated to find out whether

## Inventory or Stock Turnover Ratio | Formulae | Significance

Inventory or Stock Turnover Ratio Inventory or Stock TurnoverĀ is otherwise called as stock velocity. It indicates whether the inventory has been used effective or not. The very purpose

## Quick Ratio | Super Quick Ratio | Formulae | Significance

Quick Ratio | Acid Test Ratio | Liquid Ratio Quick ratio may be defined as the relationship between quick / liquid assets and current or liquid liabilities. Liquid