RATIO
ANALYSIS
It is a report which is used by management of company
to know status of company or whole performance of company.
Some important ratios are as follow:
1)
Current ratio:-
it shows the ratio between current assets and current liabilities.
Current ratio = current assets/current liabilities
2)
Quick ratio:-
it is the good indicator of liquidity.
Quick ratio = current assets – stock in hand/ current
liability
3)
Gross profit ratio:-
by using this ratio a businessman can find out earning capacity of his business.
Gross profit ratio = gross profit * 100/ net sales
4)
Net profit ratio:-
by using this ratio a businessman can find out net profit of his company.
Net profit = net profit * 100/ net sales
Create ledger
and voucher entries and then to view the report of ratio analysis follow the
path:
To view ratio
analysis:- G.O.T.(gateway of tally) --> ratio
analysis.
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