Financial Ratios

Financial ratios are quantitative metrics used to assess a company's financial performance and health. These ratios are calculated by dividing one financial metric by another, and they provide insights into a company's profitability, liquidity, solvency, and efficiency. Financial ratios are commonly used by investors, analysts, and creditors to evaluate a company's financial position and make informed decisions. Some of the most commonly used financial ratios include the price-to-earnings ratio, debt-to-equity ratio, return on equity, and current ratio.

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Financial Ratios

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