Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. explain the significance of following- 1. profitab

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

90.2K

Verified Solution

Question

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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Explain the significance of following-1. Profitability ratio2. Liquidity ratios3. Leverage ratios.Explain in detail.

Other questions asked by students

Q

Lonioq od ba 28 4 2yoq 4 6x y to solo 4 3 5 2...

Algebra
Q

What different characteristics would you expect to find in a bacterium that causes infection in/on: –Lungs? –Small intestines? –Stomach? –Skin?

Biology
Q

d The driving for 12 When an AC voltage of 220 V is applied to...

Physics
Q

Below are two inequalities and the graphs of their lines without the shading. By imagining...

Basic Math
Q

13 Multiply 235 345

Algebra
Q

Answer just these two questions. You must be knowledgeable in the using Sage 300 erp...

Accounting
Q

Given is the income Statement...

Accounting
Q

Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation...

Accounting
Q

Need question C. to be answered along with showing work. Recording Amortization with a...

Accounting
Q

Sunchaser Shakery, an S corporation, is liable for the tax on its excess net passive...

Accounting
Q

On January 1,2024, Baddour, Incorporated, issued 10%,12-year bonds with a face amount of $162 million....

Accounting
Q

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years...

Accounting