Accounting Ratios Class 12 All Formulas
Accounting Ratio is an arithmetical relationship between two accounting variables and It is a ratio which is calculated on the basis of accounting information.Accounting ratio is for the comparison of two or more financial data that are being used for analyzing the financial statements of the companies.
Accounting Ratios is an effective tool that is used by the shareholders, by the creditors and by all kinds of stakeholders or the interested parties to the organization. The comparison is done to understand the profitability, strength and the financial status of the companies.
Accounting Ratios Class 12 All Formulas – Types of Ratio

 Liquidity Ratios
 Current Ratio
 Quick Ratio
 Cash Ratio
 Profitability Ratios:
 Gross Profit Margin
 Operating Margin
 Profit Margin
 Earnings Per Share
 Leverage Ratio
 DebttoEquity Ratio
 DebttoAsset Ratio
 Debt Ratio
 Interest Coverage Ratio
 Activity Ratio
 Receivable Ratio
 Inventory Turnover Ratio
 Asset Turnover Ratio
 Liquidity Ratios
Class 12th Accounting Ratio Formula
 Current Ratio = Current Assets/ Current Liabilities
 Quick Ratio = Quick assets/ Current Liabilities
 Operating Margin = Gross Profit – Operating Expense/ Revenue
 Profit margin = Revenue – Operating Expenses + NonOperating Income – Interest Expense – Income Taxes/ Revenue
 Earnings per Share = Net Income – Preferred Dividend/ Weighted Average Outstanding Shares
 Debt Ratio = Total Liabilities/ Total Asset
 Receivable Ratio = Annual Sales Credit/ Accounts Receivable
 Asset Turnover Ratio = Net Revenue/ Assets
Accounting Ratios Class 12 All Formulas
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