Type of Financial Ratio

 𝗧𝘆𝗽𝗲 𝗼𝗳 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗥𝗮𝘁𝗶𝗼

It is a simplest way to understand Ratios

📊 Financial Ratio are generally used to measure the health of a company or to compare peer companies
📊 Financial Ratio can help you to find better companies among peers.
𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗥𝗮𝘁𝗶𝗼📚
These ratio tell a company's ability to convert assets into cash quickly and cheaply to pay off their short term debt.
𝗧𝘂𝗿𝗻𝗼𝘃𝗲𝗿 𝗥𝗮𝘁𝗶𝗼
Measure the speed at which balance sheet accounts are converted into sales or cash
𝗦𝗼𝗹𝘃𝗲𝗻𝗰𝘆 𝗥𝗮𝘁𝗶𝗼
The Ratio measure the ability of a company to repay its's long term debt .
𝗣𝗼𝗿𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗮𝘁𝗶𝗼
This ratio measure the ability of a company to generate profits .

𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗥𝗮𝘁𝗶𝗼
The ratio measure the valuation of company weather it is good or bad for investment .





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