Professional Documents
Culture Documents
Liquidity position
Profitability
Solvency
Financial Stability
Quality of the Management
Safety & Security of the loans & advances to be or already
been provided.
How a Ratio is expressed?
As Percentage
As Proportion
Current liabilities:
Cash Credit/OD/Export Credit
Sundry Creditors/Bills Payable
Short duration loans or deposits
Expenses payable &
Provisions against various items
3. Profitability ratios
a. Related to sales
b. Related to total Investments
c. Related to equity funds
d. Overall profitability/ Earning power
4. Turnover ratios
Liquidity Ratio
Current ratio shows the proportion of current assets of
a business in relation to its current liabilities.
current assets/ current liabilities