4. Debt to equity ratio:- Solvency ratio| Definition, formula & How to calculate the debt-equity ratio

What is the debt to equity ratio Through debt to equity ratio, we get to know how much percentage of total assets of a company is financed from debt and how much percentage is financed from shareholders equity. The debt-to-equity (D / E) ratio compares a company’s shareholder equity to its total liabilities and can…

Read More
equity ratio

3. Equity ratio:- Solvency ratio| Best way to track equity in a company’s total assets| Most important

What is the equity ratio All the assets of the company are the result of shareholder’s equity, debt from creditors or a combination of both. The equity ratio is a simple calculation that can show you how much of a company’s assets are funded by the owner’s shares. This ratio measures the ratio inside a…

Read More

2. Debt ratio: Solvency ratio| The most important way to track long-term liabilities

Debt ratio Debt ratio is also known as Debt to Assets ratio. This ratio is used to find out the long term debt of a company. If we say it in other words, this ratio is used to determine that How much percentage of the total asset is financed by debt This ratio is represented…

Read More
Solvency ratio

1. Solvency ratio, Genuine way to know the ability to repay the long term liability of the company

Solvency ratio Solvency ratio is also known as leverage ratio used to check the ability to repay long term liability of any company Before investing money in any company, it is very important to know about its business, in which the first step is how much loan the company has, as we have already told…

Read More
sales to current assets ratio

10. Liquidity ratio, Sales to current assets ratio is the most important ratio to check the liquidity of any company

Definition:- What is Sales to current assets ratio- Sales to current assets ratio is the type of liquidity ratio used to measure how efficiently an organization is using its current assets to generate revenue. It refers to the relationship between net sales and the current assets of a business. Current assets include cash, marketable securities,…

Read More
sales to working capital ratio

9. Liquid ratio, Sales to working capital ratio is the most important ratio

Definition: what is Sales to working capital ratio ?- The SWC ratio is the type liquidity ratio which defines the relationship between the revenue of the company and the amount of cash it holds as inventory and account receivable Sales to working capital ratio tell us how much percentage of working capital is trapped in…

Read More
Inventory to working capital ratio

8. Liquidity ratio, Inventory to working capital ratio is most important

Inventory to working capital ratio Inventory to WC ratio allows investors to calculate the exact portion of the working capital of the business that is tied up in its inventory By inventory to WC ratio, we find out how much percentage of working capital stuck in the inventory Formula Inventory to WC ratio is the…

Read More
cash to working capital ratio

7. Liquidity ratio, Cash to working capital ratio is the most important ratio

Cash to working capital ratio Cash to WC ratio is a liquidity ratio through which we determine how much percent of the working capital ratio will be covered by the cash & cash equivalents present in the company. When you analyze what percentage of a firm’s working capital (WC) derives from its cash and cash…

Read More
working capital ratio

6. Liquid ratio, Working capital ratio is the most important ratio

Working capital ratio The working capital ratio tells us how much of the company’s current liabilities will be covered by the company’s short-term assets. This capital ratio is also known as the current ratio. Formula This capital ratio is the ratio of currents assets and current liabilities. Working capital ratio = Current assets / Current…

Read More
working capital

5. Liquid ratio, Working capital is the most important to find out liquidity ratio

What is working capital- The capital used in the company for day to day operations is called working capital. This capital, also known as net working capital (NWC), is the difference between current assets and current liabilities Working capital = Current assets – Current liabilities This capital is measures a company’s liquidity, operational efficiency, and…

Read More