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Financial Ratio Analysis - List of Financial Ratios
Financial Ratio Analysis - List of Financial Ratios
Financial Ratio Analysis - List of Financial Ratios
Financial ratio analysis is performed by comparing two items in the financial statements. The
resulting ratio can be interpreted in a way that is not possible when interpreting the items
separately.
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FLY TO DUBAI List of Financial Ratios
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Here is a list of various financial
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ratios. Take note that most of the Accounting Certifications to
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FLY TO LONDON HEATHROW ratios can also be expressed in
percentage by multiplying the Who are the Big 4
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decimal number by 100%. Each ratio Accounting Firms?
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11/10/2017 Financial Ratio Analysis - List of Financial Ratios
Liquidity Ratios
Also known as "inventory turnover in days". It represents the number of days inventory sits
in the warehouse. In other words, it measures the number of days from purchase of
inventory to the sale of the same. Like DSO, the shorter the DIO the better.
Leverage Ratios
The reciprocal of equity ratio is known as equity multiplier, which is equal to total assets
divided by total equity.
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11/10/2017 Financial Ratio Analysis - List of Financial Ratios
4. Dividend Yield Ratio = Dividend per Share Market Price per Share
Measures the percentage of return through dividends when compared to the price paid for
the stock. A high yield is attractive to investors who are after dividends rather than long-
term capital appreciation.
Conclusion
Here's a tip. When computing for a ratio that involves an income statement item and a
balance sheet item, make sure to average the balance sheet item. This is because the income
statement item pertains to a whole period's activity. The balance sheet item should reflect the
whole period as well; that's why we average.
There are other financial ratios in addition those listed above. The ones listed here are the
most common ratios used in evaluating a business. In interpreting the ratios, it is better to
have a basis for comparison, such as past performance and industry standards.
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11/10/2017 Financial Ratio Analysis - List of Financial Ratios
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