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What are four main types of financial ratios used in ratio analysis?Multiple select question.Activity ratiosTax ratiosDebt ratiosLiquidity ratiosProfitability ratiosIncome ratios

Question

What are four main types of financial ratios used in ratio analysis?Multiple select question.Activity ratiosTax ratiosDebt ratiosLiquidity ratiosProfitability ratiosIncome ratios

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Solution

The four main types of financial ratios used in ratio analysis are:

  1. Activity Ratios
  2. Debt Ratios
  3. Liquidity Ratios
  4. Profitability Ratios

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