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Four ratios are:
1 - Current Ratio
2 - Quick ratio
3 - Debt Equity ratio
4 - Long term assets to total assets ratio
Wiki User
∙ 9y ago
Four common ratios calculated from a balance sheet are:
- Liquidity ratio, such as current ratio, which measures a company's ability to cover short-term obligations.
- Debt ratio, which indicates the proportion of a company's assets that is funded by debt.
- Return on assets (ROA), which measures how effectively a company utilizes its assets to generate profit.
- Equity ratio, which shows the proportion of a company's assets that is funded by equity, rather than debt.
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Describe the four approaches to using financial ratios?
Describe the four approaches to using financial ratios?
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