CBSE Class 12 · Accountancy · Free Premium Master sample
Financial Ratios Notes PDF — formulas, numericals and interpretation
This free Financial Ratios chapter explains the logic behind accounting ratios instead of presenting only a formula list. It is designed around four ratio families: Liquidity, Solvency, Activity and Profitability.
Key formulas covered
- Current Ratio: Current Assets ÷ Current Liabilities
- Quick Ratio: Quick Assets ÷ Current Liabilities
- Working Capital: Current Assets − Current Liabilities
- Average Inventory: (Opening Inventory + Closing Inventory) ÷ 2
- Capital Employed: Shareholders’ Funds + Long-term Debt
Why ratio questions become difficult
The calculation is often short. The harder part is classifying the correct accounting figures, selecting the correct numerator and denominator, writing the result in the correct form and interpreting what it means.
What the free Premium Master sample includes
- Visual concept maps
- Formula logic
- Worked direct numericals
- Reverse problems
- Interpretation and exam tips
- Teacher POV and common traps
Open the full free Financial Ratios PDF.
Use the Current Ratio calculator · Use the Debt-Equity calculator · See the Accountancy Premium library