Questions

What are the five market ratios?

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What are the five market ratios?

Key Takeaways There are six basic ratios that are often used to pick stocks for investment portfolios. These include the working capital ratio, the quick ratio, earnings per share (EPS), price-earnings (P/E), debt-to-equity, and return on equity (ROE).

What are the 6 types of ratios?

Category # 1. Liquidity Ratios:

  • (a) Current Ratio:
  • (b) Quick/Liquid/Acid Test Ratio:
  • (c) Absolute Liquid/Super Quick Ratio:
  • (d) Defensive-Interval Ratio:
  • i. Debt-Equity Ratio:
  • ii. Shareholders Equity Ratio:
  • iii. Long-Term Debt to Shareholders Net worth Ratio:
  • iv. Capital Gearing Ratio:

What are the 5 types of ratio analysis?

Ratio Analysis is done to analyze the Company’s financial and trend of the company’s results over years where there are mainly five broad categories of ratios like liquidity ratios, solvency ratios, profitability ratios, efficiency ratio, coverage ratio which indicates the company’s performance and various examples of …

What are the different types of ratios?

Here are the most common types of ratios and the various formulas you can use within each category:

  • Liquidity ratios.
  • Profitability ratios.
  • Leverage ratios.
  • Turnover ratios.
  • Market value ratios.

What are the 3 main categories of ratios?

The three main categories of ratios include profitability, leverage and liquidity ratios.

What are various types of ratio?

A few basic types of ratios used in ratio analysis are profitability ratios, debt or leverage ratios, activity ratios or efficiency ratios, liquidity ratios, solvency ratios, earnings ratios, turnover ratios, and market ratios.

What are the categories of ratios?

The various kinds of financial ratios available may be broadly grouped into the following six silos, based on the sets of data they provide:

  • Liquidity Ratios.
  • Solvency Ratios.
  • Profitability Ratios.
  • Efficiency Ratios.
  • Coverage Ratios.
  • Market Prospect Ratios.

How many ratios are there?

There are mainly 4 different types of accounting ratios to perform a financial statement analysis; Liquidity Ratios, Solvency Ratios, Activity Ratios and Profitability Ratios.