What Is a Financial Ratio? The Complete Beginner’s Guide to Financial RatiossteemCreated with Sketch.

in finance •  6 years ago 

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A financial ratio is a metric usually given by two values taken from a company's financial statements that compared give five main types of insights for an organization. Things such as liquidity, profitability, solvency, efficiency, and valuation are assessed via financial ratios. Those are metrics that can help internal and external management to make informed decisions about the business.

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6 years ago by

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