Question 2

What are various types of ratios?

Answer

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

1)Liquidity Ratios.
2)Solvency Ratios.
3)Profitability Ratios.
4)Efficiency Ratios.
5)Coverage Ratios.
6)Market Prospect Ratios.

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