enFIFinancial Ratios4
FinancialRatios: express the relationship between 2 or more items on a financial statement
Liquidity: how easily a company can turn some of its assets into cash.
Solvency: whether a company has enough cash to pay short term debts, or whether it could go bankrupt – have its assets sold to repay creditor.
Efficiency: how well a company uses its resources.
Financial Ratios
how well a company uses its resources.
express the relationship between 2 or more items on a financial statement
how easily a company can turn some of its assets into cash.
whether a company has enough cash to pay short term debts, or whether it could go bankrupt – have its assets sold to repay creditor.