Internet Center for Management and Business Administration Inc
During the analysis of an entity’s financial statements different ratios are used such as liquidity ratios, activity ratios, profitability ratios, leverage ratios and market ratios. Liquidity ratios are used to show the organization’s ability to meet its short term obligations while leverage ratios indicate about the companies’ long term solvency situation. Profitability ratios give a picture about the growth and profit making capabilities of the […]