What Is a Financial Ratio? The Complete Beginner’s Guide to Financial Ratios
1 min readJul 29, 2018
- Why Ratio Analysis?
- Financial Ratio Analysis and interpretation
- Key financial ratios
- Types of financial ratios
- What is liquidity?
- What are the main liquidity ratios?
- Current Ratio
- Quick Ratio (Acid or Liquid Test)
- Absolute Ratio
- What is profitability?
- What are the main profitability ratios?
- Gross Profit Margin
- Operating Profit Margin
- Return on capital employed
- Return on Equity
- What is Solvency?
- What are the main solvency ratios?
- Debt to equity ratio
- Interest Coverage Ratio
- Debt to Assets Ratio
- What is efficiency?
- What are the main efficiency ratios?
- Inventory Turnover
- Accounts Receivable Turnover or collection period
- Accounts Payable Turnover Ratio
- What is valuation?
- What are the main valuation ratios?
- Earnings Per Share
- Price/Earnings Ratio
- Dividend Yield
- Payout Ratio
- How, why and when to us financial ratios
- Summary and conclusions