Awesome Common Financial Ratios

Key ratios for the retail sector are the current ratio the quick ratio gross profit margin inventory turnover.

Common financial ratios. Generally a high price-earnings. The cash ratio computed is 33x which means that the company has more than enough cash cash equivalent to fulfill the current financial obligation. Part 101 - Common Financial.

In general however the lower the ratio the better it is for the business. Part 102 - Working Capital. As you can see there are 15 ratios beneath these categories.

This ratio is also known as cash asset ratio cash ratio and liquidity ratio. A higher current ratio indicates the higher capability of a company to pay back its debts. Part 103 - Acid Test Quick Ratio.

Part 104 - Accounts Receivable Turnover Ratio. Financial Ratios are created from information contained in financial statementsand are used to gain insight about a company. Common Financial and Accounting Ratios Formulas.

Financial ratios are the indicators of the financial performance of companies and there are different types of financial ratios which indicate the companys results its financial risks and its working efficiency like the liquidity ratio Asset Turnover Ratio Operating profitability ratios Business risk ratios financial risk ratio Stability ratios etc. It tells you how much youre paying for 1 of earnings from the company. It shows that the business has excess cash not utilized in operation which going on since 2018 when the cash ratio exceeded 10x.

Accounting ratios are among the most popular and widely used tools of financial analysis because if. Examples include such often referred to measures as return on investment ROI. Expressed as a percentage this common financial ratio indicates how much profit can be derived from each dollar of assets owned by the company.