Financial Ratios

Monitoring a company’s performance using ratio analysis and comparing those measures to industry benchmarks often leads to improvements in company performance. Not to mention these ratios are often part of loan covenants. The following article provides an overview of the five major categories of financial ratios and links to their description and calculation.

Use the following Financial Ratios to measure financial performance against standards. In addition, analysts compare these ratios to industry averages (benchmarking), industry standards or rules of thumbs and against internal trends (trends analysis). Furthermore, the most useful comparison when performing financial ratio analysis is trend analysis. They are derived from the three following financial statements:

5 Categories of Financial Ratios

The five (5) major categories in the financial ratios list include the following :

If you want to check whether your unit economics are sound, then download your free guide here.

financial ratios

Strategic CFO Lab Member Extra

Access your Projections Execution Plan in SCFO Lab. The step-by-step plan to get ahead of your cash flow.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs

financial ratios

More at WikiCFO.com

, , , , , , , , , , , , ,

3 Responses to Financial Ratios

  1. Anonymous February 12, 2010 at 11:35 pm #

    Hello everyone! I don't know where to start but hope this place will be useful for me.
    Hope to receive any assistance from you if I will have some quesitons.
    Thanks and good luck everyone! 😉

  2. Anonymous February 15, 2010 at 2:31 pm #

    Thanks after sharing. Like always, on the well-to-do and right-minded on quarry!

  3. Anonymous February 15, 2010 at 3:45 pm #

    Thanks for sharing. Like often, on the in money and right on quarry!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.