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Start learning 50% faster. Sign in nowLiquidity ratios measure the adequacy of current and liquid assets and help evaluate the ability of the business to pay its short-term debts. Current ratio or working capital ratio Quick ratio or acid test ratio Absolute liquid ratio Current cash debt coverage ratio Profitability ratios measure the efficiency of management in the employment of business resources to earn profits. Eg. Net profit (NP) ratio Gross profit (GP) ratio Price earnings ratio (P/E ratio) Operating ratio Expense ratio Activity ratios (also known as turnover ratios) measure the efficiency of a firm or company in generating revenues by converting its production into cash or sales. Eg. Inventory turnover ratio Receivables turnover ratio Accounts payable turnover ratio Average payment period Solvency ratios (also known as long-term solvency ratios) measure the ability of a business to survive for a long period of time.Eg. Debt to equity ratio Times interest earned (TIE) ratio Fixed assets to equity ratio
An article is sold for Rs. 980, yielding a profit that is twice the amount lost when the article is sold for Rs. 458. Determine the selling price requir...
A purse is sold for 12/25 of its marked price, yielding a profit of 20%. What is the ratio of the marked price to the cost price?
A pen seller sets the selling price of all pens 40% higher than their cost price. He manages to sell 70% of the pens at this marked price, while offerin...
'H' sells an article at a 20% profit. If he had bought it at 20% less and sold it for Rs. 40 more, he would have gained 75%. Determine the cost price of...
A man has 20 liters of pure alcohol. To make a 75% profit while selling it at the original cost price of alcohol, how many liters of water should he mix...
A shopkeeper purchased 50 books for Rs. 10,000, with the ratio of the marked price to the cost price set at 2:1. Due to rain damage, one-tenth of the bo...
Person 'A' bought a washing machine for a certain amount. He marked it up by p% and then gave a discount of 11.11%, resulting in ...
The marked price of an article in two different shops P and Q is Rs 1200 and Rs X respectively. In shop P the article is available at two successive dis...
