What are main accounting ratios (also known as financial ratios)?

1. Liquidity Ratios

2. Profitability Ratios

3. Activity Ratios

4. Solvency or leverage Ratios

The main accounting rations widely used are:

(a) Current Ratio [porportion or ratio of current assets to current liabilities]

(b)  Return on Equity [Net distributable profit available to partners {divided by} Total equity of partners]

(c) Debt Service Coverage ratio (DSCR) [Loan installments {divided by} Net Profit before interest)

(d) Debt Equity Ratio [Total external debt {divided by} Total equity of partners]