6 key financial ratios

If you are not one who likes to dig deep into a company's financial statements but still wants to make sense of its financials, financial ratios come to your rescue. They are readymade tools to interpret what's happening in a company. Most financial ratios can be derived from the three major financial statements: balance sheet, profit-and-loss statement and cash-flow statement. In order to put a company's ratios in perspective, compare them with the industry trend and peers' ratios. Again, good analysis goes beyond ratios, and you shouldn't make your investment decision just in terms of ratios. Here is a summary of th

This article was originally published on March 18, 2019.