Ratio Analysis & Financial Health

1. Ratio Analysis Overview

Ratio Analysis evaluates the overall operational health, liquidity, solvency, and profitability of a company by comparing financial metrics.

Financial RatioBenchmark FormulaIdeal Standard
Current RatioCurrent Assets / Current Liabilities2 : 1
Quick / Acid-Test Ratio(Current Assets - Inventory) / Current Liabilities1 : 1
Gross Profit %(Gross Profit / Net Sales) * 100Industry Specific

Press R on Gateway of Tally to open the Ratio Analysis dashboard directly!