<p hidden
Ratio analysis is a powerful tool used in financial analysis to assess a company's performance and financial health. Class 12 commerce or accounting students often study ratio analysis as an important aspect of financial statement analysis. Ratios provide valuable insights into a company's profitability, liquidity, solvency, and efficiency. This write-up provides an overview of ratio analysis and the key ratios used in evaluating a company's financial performance.
<p hidden
Profitability Ratios:
Profitability ratios measure a company's ability to generate profits from its operations. These ratios help assess the company's efficiency in utilizing its resources and earning a return for its shareholders. Some important profitability ratios include: