Ratio Meanings Flashcards
(3 cards)
1
Q
What does Efficiency ratio tell us
A
Efficiency ratios measure the ability of a business to manage its assets and liabilities efficiently.
2
Q
What do profitability ratios tell us
A
Profitability ratios measure the efficiency with which your campany turns business activity into profits.
3
Q
What do liquidity ratios tell us
A
Liquidity ratios measure a company’s ability to pay debt obligations and its margin of safety.
