ratios

Informed Decisions: Guide investment, lending, and management strategies. Types of Accounting Ratios Accounting ratios are generally categorized into four main types: Liquidity Ratios Assess a company's ability to meet short-term obligation

ns. Interpretation: A ratio above 1 indicates sufficient short-term liquidity; however, excessively high ratios may suggest inefficient asset utilization. Pros: Simple to calculate Provides immediate liquidity i