5. Ratio Analysis

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1. 1

   Icse Class 12 Accounts – Chapter 5: Ratio Analysis

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   This section introduces Ratio Analysis as a tool for interpreting financial...

2. 1.1

   Introduction

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   Ratio Analysis is a vital financial tool that simplifies the understanding...

3. 1.2

   Meaning Of Ratio

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   A ratio expresses the quantitative relationship between two accounting...

4. 1.3

   Objectives Of Ratio Analysis

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   This section outlines the key objectives of ratio analysis, emphasizing its...

5. 1.4

   Types Of Ratios

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   This section discusses the different types of ratios used in ratio analysis,...

6. 1.4.1

   Liquidity Ratios

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   Liquidity ratios measure a firm's ability to cover its short-term obligations.

7. 1.4.1.1

   Current Ratio

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   The Current Ratio is a vital liquidity ratio that indicates a company's...

8. 1.4.1.2

   Quick Ratio (Acid-Test Ratio)

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   The Quick Ratio, also known as the Acid-Test Ratio, measures a company's...

9. 1.4.2

   Solvency Ratios

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   Solvency ratios assess a firm's ability to meet its long-term obligations,...

10. 1.4.2.1

    Debt-Equity Ratio

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    The Debt-Equity Ratio is a solvency ratio that indicates the proportion of...

11. 1.4.2.2

    Total Assets To Debt Ratio

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    The Total Assets to Debt Ratio indicates a firm's ability to cover its...

12. 1.4.2.3

    Proprietary Ratio

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    The Proprietary Ratio measures the proportion of shareholders' equity to...

13. 1.4.2.4

    Interest Coverage Ratio

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    The Interest Coverage Ratio measures a company's ability to pay interest on...

14. 1.4.3

    Activity (Turnover) Ratios

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    Activity (Turnover) Ratios assess how effectively a business uses its assets...

15. 1.4.3.1

    Inventory Turnover Ratio

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    The Inventory Turnover Ratio measures how effectively a company manages its...

16. 1.4.3.2

    Debtors Turnover Ratio

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    The Debtors Turnover Ratio measures how efficiently a company collects...

17. 1.4.3.3

    Creditors Turnover Ratio

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    The Creditors Turnover Ratio measures the efficiency of a company in...

18. 1.4.3.4

    Working Capital Turnover Ratio

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    The Working Capital Turnover Ratio measures how effectively a company...

19. 1.4.4

    Profitability Ratios

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    Profitability ratios measure a business's ability to generate profit...

20. 1.4.4.1

    Gross Profit Ratio

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    The Gross Profit Ratio measures the proportion of gross profit to net sales,...

21. 1.4.4.2

    Net Profit Ratio

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    The Net Profit Ratio is a critical profitability ratio that measures the...

22. 1.4.4.3

    Operating Ratio

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    The Operating Ratio measures the efficiency of a business in managing its...

23. 1.4.4.4

    Operating Profit Ratio

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    The Operating Profit Ratio measures a company's operating efficiency by...

24. 1.4.4.5

    Return On Investment (Roi) Or Capital Employed

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    This section focuses on Return on Investment (ROI), explaining its formula...

25. 1.4.4.6

    Earnings Per Share (Eps)

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    Earnings Per Share (EPS) is a key profitability ratio that signifies a...

26. 1.4.4.7

    Dividend Per Share (Dps)

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    The Dividend per Share (DPS) is a key metric that determines the amount of...

27. 1.4.4.8

    Price Earning Ratio (P/e Ratio)

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    The Price Earning Ratio (P/E Ratio) is a key profitability metric that...

28. 1.5

    Uses Of Ratio Analysis

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    Ratio analysis is vital for assessing financial health, aiding...

29. 1.6

    Limitations Of Ratio Analysis

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    Ratio analysis has several limitations that must be considered when...

30. 1.7

    Chapter Summary

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    Ratio Analysis simplifies financial interpretation and informs decisions...

31. 1.8

    Practice Questions

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    This section presents practice questions to reinforce understanding of ratio...

32. 1.8.1

    Very Short Answer Questions

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    This section contains very short answer questions related to Ratio Analysis,...

33. 1.8.2

    Short Answer Questions

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    This section covers short answer questions related to Ratio Analysis,...

34. 1.8.3

    Long Answer Questions

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    This section focuses on the importance of long answer questions in...

35. 1.8.4

    Numerical Problems

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    This section focuses on practical numerical problems related to ratio...