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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 |
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Subject:
Re: Ratios
Answered By: politicalguru-ga on 27 Jul 2005 03:13 PDT Rated: |
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. |
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