Financial statements are prepared for the users of the financial statements to provide relevant information for their decision-making needs. Users…
In this article, we’ll discuss all profitability ratios that the financial analysts and accountants commonly use. But first, let’s see…
Efficiency ratios, also known as activity ratios, are financial indicators of an entity’s short-term financial performance. These ratios look at…
Liquidity refers to an entity’s ability to pay its short-term liabilities. Liquidity ratios are financial indicators of an entity’s liquidity…
Solvency refers to an entity’s ability to pay its long-term liabilities. Solvency ratios are financial indicators of an entity’s solvency…
Investors’ ratios or market ratios are used by investors before making their investment decisions. Current and potential investors eagerly manage…
Dividend payout ratio is a financial ratio that compares dividends and earnings of a company. In simple words, it is…
Dividend yield is a financial ratio that compares annual dividend per share and market price per share of a company.…
Price-to-cash flow (P/CF) ratio is a ratio that compares market price per share of a company with its operating cash…
Price-to-book (P/B) ratio, also known as market-to-book ratio, is a metric that compares a company’s market price per share with…