axninfotech
0 comments April 4, 2025

Ratio Analysis in Tally

Profitability Measurement: Make the purpose of this report is to calculate the profit of the business operations and understand the net profits. To measure the profitability various parameters are considered like gross profit ratios, Net Profit Ratio, Expense Ratio, etc.

Evaluation of Operational Efficiency: Certain ratios highlight the company’s ability in managing the asset and other resources.  Proper utilization of cash is necessary to avoid cash blockages.

Turnover Ratio: Highlights Mismanagement of Assets

Single Ratio: Result of inter-related ratio analyzed.

Ensure Suitable Liquidity: Using the Current Ratio and quick ratio helps the company maintain the liquid assets to meet its short-term solvency requirements.

Long-Term Solvency: Determine the long-term solvency of any asset or firm in dept to take necessary actions to avoid liquidation in the future.

Working capital: Ability to cover the current liabilities or debts with the value of the current assets.

Tally Prime does the ratio analysis of the business and is used to compare different financial data sets with a button click.

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Kathryn Murphy

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Creative Approach To Every Project

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