The document discusses various financial ratios that can be used to analyze a company's financial health and performance. It describes liquidity ratios and solvency ratios, which are used to evaluate a company's ability to meet short-term and long-term debts, respectively. It notes that healthy companies will have good liquidity and solvency, while companies that are experiencing financial difficulties may show signs of low liquidity coupled with high solvency, requiring solutions like cost efficiencies, asset sales, product innovation or management changes to improve their financial situation.

1. Financial Management
Meeting – 2
Fadhil Ismi – Syiah Kuala University

2. Example Ration in Business
• Your Subtopics Go Here
Source : http://multiplier-effect.org/files/2011/07/Financial-Ratios-
for-Non-financial-business-sector.png

3. Definition of Ratio
„ Ratio means to compare how one
number related to another
number
Keyword : COMPARE
To compare income in company, to
see it’s increase or decrease, Every
year

4. KindofRatio
1. (Liquidity Ratio)
2. (Solvability Ratio)
3. Profitability Ratio
4. Activity Ratio
5. Market Ratio

5. LR Are used to determine
a company’s ability to
fulfill their short term
debt “On Time”.
Ex : Payment of
Electricity, phone, water,
Employee salaries
LiquidityRatio(LR)
Keyword :
Short Term debt

6. SolvabilityRatio(SR)
...
SR Are used to
determine a
company’s ability to
fulfill their Long
term debt “On Time”.
Ex : Bank Loans, credit
debt business partner
Keyword :
Long Term debt

7. Relation Liquidity and
Solvability
Liquidity
Solvability Liquidity
InSolvability
ILiquidity
Solvability
ILiquidi
ty InSolvabi
lity
Health and Good
Companies
Warning! Must
find Solution. The
Activity “ Dig A
hole Cover A
hole”
Warning! Must
find Solution. The
Activity“ Dig A
hole Cover A
hole”
Bad Companies,
The solution is
Mergers or
acquisitions

8. Unique Solution to Warning and
Bad Companies
Efficiency all Expanses
Sales Asset as funding needs
Product Innovation
Effectivity on work
Streamlining management ( Early retire )

9. Thank You… 
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