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Types of financial ratio analysis. Financial ratio analysis A reading prepared by Pamela Peterson Drake O U T L I N E 1. For the purpose of analysing the balance sheet and the profit and loss account to compute ratios it is useful to rearrange and redraft them. Financial ratios are usually split into seven main categories.

Ad Develop financial skills to unlock critical insights into performance. Based on the purpose the ratios are classified as profitability ratios turnover ratios and financial ratios or solvency ratios. Financial ratio analysis compares relationships between financial statement accounts to identify the.

Ad Develop financial skills to unlock critical insights into performance. HBS Online offers a unique and highly engaging way to learn vital business concepts. Profitability ratios and activity ratios 4.

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