All key Financial Ratios and its types with simple Examples

4876

Financial ratios are primarily tools for turning the data in financial statements into information used by managers and executives to better understand what is happening in a company. These ratios are used in evaluating an acquisition, creating Pro-forma statements related to potential courses of action, or figuring out which stock to buy or where to invest

Financial ratios can typically be grouped into six types. Each Ratios are explained in a separate post with examples for better understanding.

Click on each ratios and empower yourself in decision making by understanding financial ratios and statements.

Profitability ratios

• Current yield
• Net profit margin
• Return on assets (ROA)
• Return on net assets (RONA)
• Return on equity (ROE)
• Return on investment (ROI)

Debt ratios

• Asset to equity ratio or Equity multiplier ratio
• Asset turnover ratio
• Cash flow to debt ratio
• Debt ratio or Debt to asset ratio or Debt to capital ratio
• Debt to equity ratio
• Interest coverage ratio

Previous articleCochran–Mantel–Haenszel test in R and Interpretation – R tutorial
Next articleDividend Payout Ratio : Meaning, Formula and Example
A.Sulthan, Ph.D.,
Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments