The Finance Owl

Banks – Loans – Mortgages – Money

Financial ratios are ratio comparisons of specified values in a company’s financial statements. There are lots of different ratios that are used to weigh up the financial state of a company, such as the ratios listed below. Ratios are always shown as a percentage or decimal value and are used by many company stakeholders: company managers, both current and future shareholders as well as current creditors.

Financial ratios can quantify a multitude of facets of a company and are commonly used in analyzing financial statements. They are grouped depending on the particular financial aspect of the company that the ratio relates to.

The links below should help to provide you with a basic understanding of specific financial ratios.