Your Financial Ratio Cheat Sheet

Published: 20th Nov 2024

Profitability (Margins)

To check the ability of a company to generate earnings from sales as various stages of operations.

Profitability (Efficiency)

To check how efficiently a company is utilising its available resources.

Growth

To check the effectiveness of a company in expanding and sustaining its growth over the long term.

Activity Ratios

To assess the effectiveness of a company in utilising its assets and managing its liabilities to generate revenue and maintain efficient operations.

Liquidity Ratios

To evaluate a company’s financial health by its ability to pay off immediate obligations using its liquid assets.

Solvency Ratios

Assess a company’s ability to meet its long-term debt obligations and overall financial commitments.

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