Accounting ratios, which are also known as financial ratios, are one part of financial statement analysis. Accounting ratios will often relate one financial statement amount to another financial statement amount. For instance, the inventory turnover ratio divides a company’s cost of goods sold for...
Some Formal Definitions of Ratios A ratio is a comparison of two numbers using division. The ratio of a to b is a b with b ≠ 0 A ratio is an ordered pair of numbers, written a:b, with b ≠ 0 As you can see there are more than one way to express a ratio. For example, ...
What are the types of liquidity ratios? There are three major types of liquidity ratios a company uses to understand its financial position. Current ratio Quick ratio / Acid test ratio Cash ratio Current ratio The current ratio measures the ability of a company’s available current assets to of...
There are two types of credit utilization ratios: per-card and overall. Per-card utilization measures how much of each card’s credit limit you’re using, while overall utilization takes all your cards and their limits into account. Enter the balance and credit limit for up to three cards ...
What are the different types of RESPs? There are three types of RESPs in Canada. Individual RESP:These registered plans tend to be quite uncomplicated. Anyone can open an Individual RESP for a child and contribute to it. This can include a parent, a grandparent, a relative or even a fa...
Types of DTI ratios Lenders typically focus on two kinds of DTI ratios. Front-end ratio:Also called the housing ratio or mortgage-to-income ratio, this shows what percentage of your income would go toward housing expenses if you were approved for your mortgage. It includes your monthly mortgag...
Are there different types of numeric number systems? Yes - just like how different cultures develop their own alphabet systems for written words, various parts of the world have created unique numerical representations as well such as Arabic numerals (what we typically see), Roman numerals (used ...
Types of ETFs Exchange-traded funds may trade like stocks, but under the hood, they more closely resemble mutual funds and index funds, which can vary greatly in terms of their underlying assets and investment goals. Below are a few common types of ETFs. These ETFs aren’t categorized by...
The current GMAT is scored on a range from 200 to 800. The change was made so that test-takers and schools can distinguish which test a score is from. Because of the change, test takers and schools are encouraged to compare percentiles rather than scores, Manish Dharia, director of ...
The above are the average mortgage rates for a 75% loan-to-value mortgage. Average residential mortgage rates A residential mortgage is one that you use for a property you plan to live in. The table below shows the average rates for selected deal lengths and types. Deal type and length...