Guides ยท Finance
Financial Ratios Basics
Read key financial ratios
Understanding financial ratios means looking at liquidity (current/quick), profitability (gross/operating margin, ROE), efficiency (turnover), and leverage (debt/equity) to compare performance over time or against peers.
- financial ratios
- current ratio
- roe
- profit margin
- debt/equity
Liquidity
Current/quick ratios show ability to cover short-term obligations.
Profitability
Margins and ROE indicate earning efficiency.
Leverage/Efficiency
Debt/equity and turnover ratios reveal capital and usage efficiency.