Financial Ratios & Terms

1. Liquidity Measurement Ratios
2. Profitability Indicator Ratios
3. Debt Ratios
4. Operating Performance Ratios
5. Cash Flow Indicator Ratios
6. Investment Valuation Ratios

What are Financial Ratios?

Wikpedia:

A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Security analysts use financial ratios to compare the strengths and weaknesses in various companies.[1] If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios.

http://en.wikipedia.org/wiki/Financial_ratio

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How do Financial Ratios help my Business?

Financial Ratios are used in a number of fields, including investing, start-ups, banking, mergers and acquisitions, divestitures, corporate management, and more.

These ratios help you make the right decision in different scenarios. They quantify numbers that are meaningless on their own, identify important notions of business industries and operations, and allow you to compare different set of variables with respect to each other.

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Types of Financial Ratios

Investopedia:

Liquidity Measurement Ratios	Operating Performance Ratios
Current Ratio Quick Ratio Cash Ratio Cash Conversion Cycle	Fixed-Asset Turnover Sales/Revenue Per Employee Operating Cycle
Profitability Indicator Ratios Profit Margin Analysis Effective Tax Rate Return On Assets Return On Equity Return On Capital Employed	Cash Flow Indicator Ratios Free Cash Flow/Operating Cash Ratio Operating Cash Flow/Sales Ratio Cash Flow Coverage Ratio Dividend Payout Ratio
Debt Ratios Overview Of Debt Debt-Equity Ratio Capitalization Ratio Interest Coverage Ratio Cash Flow To Debt Ratio	Investment Valuation Ratios Per Share Data Price/Book Value Ratio Price/Cash Flow Ratio Price/Earnings Ratio Price/Earnings To Growth Ratio Price/Sales Ratio Dividend Yield Enterprise Value Multiple

http://www.investopedia.com/university/ratios/

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