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: Flex 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

What is the average incubation period of Chagas’ disease? What are some signs and symptoms of...

Biology
Q

1) Please find and share one sorting/searching algorithm. Explain it, and discuss its efficiency 2) Please find...

Programming
Q

Exercise 12-3 Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost...

Accounting
Q

Consider the linear function g x X 1 0 1 2 Distance g x 3...

Basic Math
Q

Given are histograms and the five number summaries for the average windspeeds in a particular...

Statistics
Q

please solve Whispering Winds and Associates is a medium-sized company...

Accounting
Q

PLEASE ANSWER CLEARLY THANKS :)3 Wilcox Electronics uses a sales journal, purchases journal, cash...

Accounting
Q

The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method...

Accounting
Q

The board of directors of Lauber Corporation are considering two plans for financing the purchase...

Accounting
Q

Check Required information [The following information applies to the questions displayed below! On January 1,...

Accounting
Q

Question 1 3 pts Listed below are common transactions a company would enter into. For...

Accounting
Q

1 2 4 5 On February 22, 2021, the Bank of England provided the following...

Finance