Ratio Analysis Financial ratio analysis is the calculation and comparison of ratios which are derived from the information in a company's financial statements ong-term Profitability Activity Liquiditydebt-paying Market analysis analysis analysis ability Strength analysis Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
11 Ratio Analysis Financial ratio analysis is the calculation and comparison of ratios which are derived from the information in a company's financial statements Profitability analysis Activity analysis Liquidity analysis Long-term debt-paying ability analysis Market Strength
Profitability analysis Return on total Net income assets Average total assets Net income Return on long term capital Average long-term debttaverage Owner’ s equity Return on net Net income assets average stockholders'equity Gross income perating margin Net sales Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 12
12 Profitability analysis Return on total assets Net income Average total assets Return on longterm capital Net income Average long-term debt+average owner’s equity Return on net assets Net income average stockholders’ equity Operating margin Gross income Net sales