Old ratio is that in which partners share their profits and losses before the admission of new partner and retirement or death of a partner and after this affect they change there old ratio into new profit sharing ratio.

Introduction:
Ratios are used to compare two or more items in financial statements. The old ratio and the new ratio are two types of ratios used in financial analysis.

Difference between Old Ratio and New Ratio:
The main difference between old ratio and new ratio is their relevance to modern business practices.

Old Ratio:
Old ratios were developed in the early stages of accounting and finance. They were based on traditional business models and practices. These ratios were simple and easy to calculate but lacked accuracy and relevance to modern business practices. Some of the old ratios are:

- Current ratio
- Acid test ratio
- Gross profit ratio
- Net profit ratio
- Return on capital employed

New Ratio:
New ratios are developed to overcome the limitations of old ratios. They are based on modern business practices and are more accurate and relevant. New ratios are complex and require advanced calculation techniques, but they provide more insightful information about the financial health of a business. Some of the new ratios are:

- Return on investment (ROI)
- Earnings per share (EPS)
- Price-earnings ratio (P/E ratio)
- Debt-to-equity ratio
- Asset turnover ratio

Conclusion:
In conclusion, the main difference between old ratio and new ratio is their relevance to modern business practices. Old ratios lack accuracy and relevance, while new ratios provide more insightful information about the financial health of a business. It is important to use both types of ratios to gain a comprehensive understanding of a business's financial performance.