Accounting Ratios

Accounting ratios are essential tools used for evaluating the financial health of a business. They provide insights into various aspects of a company’s performance, such as profitability, liquidity, efficiency, and solvency. By analyzing these ratios, stakeholders can make informed decisions regarding investments, credit, and management practices. This category explores key accounting ratios, their calculations, and interpretations, helping you understand how to assess a company’s financial standing effectively. Whether you’re a student, investor, or business owner, mastering these ratios is crucial for developing a comprehensive understanding of financial analysis.