ACPROJECTCOUNTS

1. ACCOUNTS
ACCOUNTING RATIO

2. Net Profit
Ratio= NetprofitaftertaxX100NetSales
(2) Gross Profit
Ratio= GrossProfitX100NetSales
(3) Earnings per share
= (NetIncome−PreferredDividend)WeightedAver
agenumberofsharesoutstanding × 10

3. Liquidity Ratios
Profitability Ratios
Activity Ratios
Solvency Ratios

4. QuickRatio= Totalcurrentratio
−InventoryTotalCurrentLiabilit
ies
Profitability Ratios:
Profit is the main purpose of doing the business. All business needs
to be running on profit. These ratios are used to find out the
profitability of a business and hence to measure the success
effectively over a period of time