The contribution margin ratio is the percentage of a company's contribution margin to its net sales
Titanium is useful because it has a high strength to weight ratio.
The evaluation of financial data may be performed through ratio analysis, trend evaluation, and financial planning modeling. Financial planning and forecasting are facilitated if used in conjunction with a Decision Support System (DSS).
ratio analysis
The efficiency ratio for a machine usually refers to the ratio of the useful energy available from a machine and the energy put into it.
A lower ratio indicates that one value is smaller relative to another value, whereas a higher ratio implies a greater difference between the two values. Ratios serve as useful indicators to compare and analyze data in different contexts, such as financial, business, or mathematical scenarios.
It depends on the nature of business as well as the capital intensity of the business if business is capital intensive the high current ratio required otherwise it is not required to maintain high current ratio
Debt to total assets ratio
Its the ratio between the assets which generate income for the business to total assets owned by the business.If the ratio is higher, that shows business is in good position.
The term for this ratio is "efficiency". It is used to measure how well a device converts input energy into useful output energy.
gearing is where a company analyses its financial expenditure on its operations
It is most useful for calculating the profitability of he business whenever required. The expression defines it as contribution/sales x 100. It is also important for calculating Break even point.
A good cash ratio for a business is typically around 0.2 to 0.5, meaning the business has enough cash to cover 20 to 50 of its current liabilities. The cash ratio can be calculated by dividing the total cash and cash equivalents by the total current liabilities of the business.