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what should be financial ratios for healthy business. how it helps in viewing the business capabilities.

11th April 2012 From India , Bangalore

PARTICIPATING IN DISCUSSION:
Asbetgeri
Engineer B Ecivil Mba (ph D)
+3 Others

Financial ratios are important for bankers to analyse. but question is what is healthy ratio.
20th May 2012 From India , Bangalore
Hi,
There are many ratios, which are used to see how the business is healthy in terms of many ways..............
Like,
1.Debt Equity ratio shows how much finance is required to the company & 2:1 is the best
2.Debt service Coverage ratio: It shows how the business repay bank loan and interest, and or operating expenses of the business. DSCR: 1.7 means, the company atleast repay bank loan. And 2.1 means the business is very healthy by all means.
I think this will be sufficient to know whether the business is healthy or not.
27th May 2012 From India , Mumbai
The accounting ratio is statistical yard stick to measure relationship between two accounting figures.It is usually used to analyse the trend of the business, and it is very benefited to the investor,and supplier.The investor decided to invest or not invest on the analyses of accounting ratio.Accounting ratio is calculated on the basis of balance sheet, profit and loss account, balance sheet & profit and loss account.Working capital ratio or current ratio, Liquid ratio or quick ratio or acid test ratio, Return on proprietary fund ratio, Proprietor fund ratio is calculated on the basis of balance sheet. Gross profit ratio, Net profit ratio,Expenses ratio,inventory ratio,operating ratio are calculated on the basis of profit and loss account.Return on capital ratio, Return on total resources ratio, turnover of fixed assets ratio, Debtor ratio, Creditor ratio , are calculated on the basis balance sheet and profit and loss account
C A K C AGARWAL, ALLAHABAD
10th June 2014 From India, Allahabad
If opening stock $ 3000 closing stock $ 5000, sales $ 40000 and margin 20% then stock turn will be ?????
17th September 2014 From India , Pune
Accounting Ratios do not form ultimate analytical parameters; they are a few among the analytical tools.To know how healthy is the business, it is always prudent to look into the details notes forming part of the audited accounts.What are not disclosed are as important as what are disclosed
Regards
M.Rajkumar
Management Consultant
29th April 2015 From India, Trivandrum
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