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Q: Ratios ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Ratios
Category: Business and Money
Asked by: neteno-ga
List Price: $2.00
Posted: 26 Jul 2005 11:49 PDT
Expires: 25 Aug 2005 11:49 PDT
Question ID: 548134
explain: profitability ratios, solvency ratios, and liquidy ratios
Answer  
Subject: Re: Ratios
Answered By: politicalguru-ga on 27 Jul 2005 03:13 PDT
Rated:4 out of 5 stars
 
Dear Neteno, 

Profitability ratios are "Used to measure how successfully a business
earns a return on its investment." (Glossary P -
<http://www.crfonline.org/orc/glossary/p.html>). In other words, they
help "to explain the profitability of an entity during a defined
period of time." (SOURCE: Glossary,
<http://wps.pearsoned.co.uk/wps/media/objects/1065/1090612/glossary.html>).

Solvency ration is a "Key ratio representing the relative size of
solvency capital. The solvency ratio is calculated as solvency capital
in relation to net premiums written, excluding portfolio premiums.
Compare with solvency capital. Solvency requirement (solvency margin)
The capital required for insurance operations from the viewpoint of
the supervisory authorities. The requirement is based on the
historical claims outcome or gross premiums written, whichever is
higher." (SOURCE: if-insurance,
<http://www.if-insurance.com/web/corporate.nsf/0/3011CF4D9A2E08D0C1256E5C0055763D?OpenDocument>).

The liquidity ratio (please note that you've misspelt the term) is
defined as: "A ratio that shows what proportion of an entity?s assets
can be readily turned into cash in the short term." (SOURCE: Glossary,
<http://wps.pearsoned.co.uk/wps/media/objects/1065/1090612/glossary.html>).
Other definitions could be found on Google's "define" mechanism:
://www.google.com/search?hl=en&lr=&q=define%3Aliquidity+ratio&btnG=Search 

I hope this answers your question. Please contact me if you need any
further clarification on this answer before you rate it. I've used
Google "define" mechanism to find definitions for you.
neteno-ga rated this answer:4 out of 5 stars

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