Accounting Ratios
In the NCERT Accountancy textbook for Class 12, this topic turns financial statements into ratios that judge liquidity, solvency, activity and profitability. You learn the current and liquid ratios, the debt equity and proprietary ratios with interest coverage, inventory and receivables turnover, and the gross, operating and net profit margins with return on capital employed. The lesson shows the formula, computation and reading of each measure from real figures, and cautions that one ratio alone proves little until it is compared across years or against peers.
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