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 Ratio | Benchmark Formula | Ideal Standard |
|---|---|---|
| Current Ratio | Current Assets / Current Liabilities | 2 : 1 |
| Quick / Acid-Test Ratio | (Current Assets - Inventory) / Current Liabilities | 1 : 1 |
| Gross Profit % | (Gross Profit / Net Sales) * 100 | Industry Specific |
Press R on Gateway of Tally to open the Ratio Analysis dashboard directly!
Generating Financial Statements and MIS Reports
Module Progress: 6 of 10 Topics (60%)
60%
- Advantages of MIS Reports in Decision Making
- Overview of MIS Reports in TallyPrime
- Trial Balance & Balance Sheet Analysis
- Profit & Loss Account (Trading & P&L)
- Cash Flow & Funds Flow Statements
- Ratio Analysis & Financial Health
- Day Book & Receipts and Payments Account
- Purchase Register & Columnar Analysis
- Sales Register & Periodic Analysis
- Bills Receivable & Bills Payable (Outstandings)