CLASSIFICATION OF THREE MAJOR FINANCIAL RATIOS

CLASSIFICATION OF THREE MAJOR FINANCIAL RATIOS
Put simply there are 3 (three) ratio is always used in financial analysis:
Solvency ratio
Profitability Ratios
Activity Ratio
RATIO solvency
Company's ability to meet all short-term liabilities and long on time
Company's ability to meet all financial obligations if the company in liquidasi
Liquidity
The Company's ability to pay short-term obligations in a timely manner
Current Ratio:
(Current assets / current debts) X 100%
Quick Ratio
((Current assets - inventory) / Debt smoothly) X 100%
Solvency ratio
Long Term
((Current Assets + fixed assets) / Total debt) X 100%
Debt to Equity Ratio:
(Own capital / Total debt) x 100%

PROFITABILITY RATIOS
Financial ratios to measure the potential earnings of a company
1. RESULTS OF SALES
2. RESULTS FOR INVESTMENT
3. EARNINGS PER SHARE

RESULTS OF SALES
Profitability ratio of percentage of income meningdikasikan
Disposable income / SALES

RESULTS FOR INVESTMENT
Profitability ratio that measures the performance income earned for every dollar invested
Disposable income / TOTAL OWN CAPITAL

EARNINGS PER SHARE
Measuring the amount of dividends payable to shareholders of the company
NET PROFIT / NUMBER OF SHARES OF ISSUED

ACTIVITY RATIO
Financial ratios to evaluate the use of assets of a company by its management
MEASURING THE EFFICIENCY IN THE USE OF A RESOURCE COMPANY WITH RESPECT TO PROFITABILITY
Shows COMPANIES PROFITS TO GET MORE THAN OTHER COMPANIES IN THE SAME RESOURCES

Inventory turns RATIO
Measures the average number of stock sold and in stock for a year
RATES OF SALES / INVENTORY AVERAGE = (RATES OF SALES / (INVENTORY AT BEGINNING OF YEAR-END OF YEAR)