23 February 2023
I would like to know what all ratios to consider while analysing a balance sheet whether it is strong or weak balance sheet and how much the ratios should be? Thanks in advance
23 February 2023
Balance sheet ratios evaluate a company's financial performance. There are three types of ratios derived from the balance sheet: liquidity, solvency, and profitability. Liquidity ratios show the ability to turn assets into cash quickly. Solvency ratios show the ability to pay off debts. Profitability ratios show the ability to generate income.
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