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For use case Our customers For enterprise For small business Features Integrations
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For use case Our customers For enterprise For small business Features Integrations
Type of Ratio | Formula | Ratio |
---|---|---|
Net Profit Margin | (Net Profit / Revenue) × 100 | 26.67% |
Return on Equity (ROE) | (Net Profit / Shareholders' Equity) × 100 | 80% |
Current Ratio | Current Assets / Current Liabilities | 2.67 |
Quick Ratio (Acid-test Ratio | (Current Assets - Inventory) / Current Liabilities | 2.17 |
Ratios include the working capital ratio, the quick ratio, earnings per share (EPS), price-earnings (P/E), debt-to-equity, and return on equity (ROE). Most ratios are best used in combination with others rather than singly to accomplish a comprehensive picture of a company's financial health.
What are the major categories of financial ratios? ›Quick Ratio MRQ | 0.74 | 1.89 |
---|---|---|
Current Ratio MRQ | 1.16 | 2.53 |
LT Debt to Equity MRQ | 124.81% | 61.46 |
Total Debt to Equity MRQ | 389.04% | 205.24 |
Financial ratios fall into 6 broad categories: efficiency, liquidity, leverage, profitability, market value and coverage ratios.
What are the key ratios used in financial analysis? ›5 Essential Financial Ratios for Every Business. The common financial ratios every business should track are 1) liquidity ratios 2) leverage ratios 3)efficiency ratio 4) profitability ratios and 5) market value ratios.
What are the major ratio classifications? ›The ideal current ratio, according to the industry standard is 2:1. That means that a firm should hold at least twice the amount of current assets than it has current liabilities.
How to remember financial ratios? ›Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. But it doesn't stop there, as different industries can have different average P/E ratios.
There is no ideal figure, but a cash ratio is considered good if it is between 0.5 and 1. For example, a company with $200,000 in cash and cash equivalents, and $150,000 in liabilities, will have a 1.33 cash ratio.
What are the main types of accounting ratios? ›The accounting ratios or ratios in management accounting have four ratios: liquidity ratios, activity ratios, solvency ratios, and profitability ratios.
What is the 70 20 10 financial ratio? ›The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis.
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