Financial Ratios

Financial Ratios
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Financial Ratios can be defined as ratios or relative magnitude of any two numbers selected from Financial Statements. This helps to interpret the Financial statements more clearly and by comparing them with the previous year's statements or any other company from the same industry.

  • This is broadly categorized into
  • Profitability Ratios
  • Leverage Ratios
  • Liquidity Ratios
  • Valuation Ratios

Without these Ratios, it would be tough to analyze peer companies in the same industry. We have discussed each of these ratios in detail in different articles.