Common Ratios used in Financial Analysis Assignment Help

Common Ratios used in Financial Analysis

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As already mentioned due to the vast universe of ratios, they are divided in broad categories based on what aspects of performance a ratio is intended to detect.

Financial analysts use a variety of categories to classify ratios. The category names and the ratios included in each category can differ. Common ratio categories include activity, liquidity, solvency, and profitability.

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These categories are summarized below. Each category measures a different aspect of analysis, but all are useful in evaluating a company's overall performance and efficiency.

common ratios used in financial analysis

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