

Ratio Analysis: Using Financial Ratios
There is a lot to be said for valuing a company, it is no easy task. If you have yet to discover this goldmine, the satisfaction one gets from tearing apart a companies financial statements and analyzing it on a whole different level is great  especially if you make or save yourself money for your efforts.
In this section we will try to present 19 basic fundamental analysis ratios to help you get started. The ratios are presented in a simplified manner to make them easier to understand. Sure some of the ratios have different varieties, but by the end you will understand the basic premise and reasons for fundamental analysis.
The Ratios:


RELATED TERMS

Current Ratio
The current ratio is a liquidity ratio measuring a company's ... 
Activity Ratios
Accounting ratios that measure a firm's ability to convert different ... 
Efficiency Ratio
Ratios that are typically used to analyze how well a company ... 
Combined Ratio
A measure of profitability used by an insurance company to indicate ... 
Profitability Ratios
A class of financial metrics that are used to assess a business's ... 
Receivables Turnover Ratio
An accounting measure used to quantify a firm's effectiveness ...
RELATED FAQS

How do I use ratios to perform a financial analysis?
Learn which ratios are used in fundamental analysis. Find out how analysts measure company performance and financial health ... Read Answer >> 
What role does ratio analysis play in valuing a company?
Learn about the role of ratio analysis in determining company value, including some of the most common ratios used by modern ... Read Answer >> 
Why do shareholders need financial statements?
Discover the importance of a company's financial statements for stock shareholders in evaluating their equity investment ... Read Answer >> 
Which financial metrics are best for analyzing companies in the chemicals sector?
Learn about some of the key financial metrics that investors and market analysts commonly use to evaluate companies in the ... Read Answer >> 
What is the difference between the current ratio and the acid test ratio?
Read about the main differences between the acidtest ratio and the current ratio, two measures of a company's liquidity ... Read Answer >> 
How does ratio analysis make it easier to compare different companies?
Learn what ratio analysis is, how investors can compare companies within the same sector using ratio analysis and how ratios ... Read Answer >>