Sign in Subscribe

Dictionary

Financial Ratios

Photo by Markus Spiske / Unsplash

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.

Read next

Macro Lesson 1: What is IIP and how can it be used to predict the stock market?

Macro Lesson 1: What is IIP and how can it be used to predict the stock market?

Before we discuss today’s topic of predicting the movement of the Indian Stock Market using the "IIP" economic indicator, let me introduce you to a small theory of "Harry Markowitz" - the Nobel-winning pioneer of the "Modern Portfolio Theory".

Derivatives

Derivatives

Derivatives represent financial agreements that leverage their worth from an underlying asset or security, established to mature on a predetermined future date, at which point the contract concludes along with the predetermined quantity.

CAMELS Rating System

CAMELS Rating System

CAMELS rating system is a way to check how good a bank is in India. It is a supervisory rating system used by banking authorities to assess the financial condition of banks and other financial institutions.