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Acid test

This ratio indicates whether the firm has sufficient short-term assets to cover its
short-term liabilities.
https://www.investopedia.com/terms/a/acidtest.asp
Cash ratio

This ratio measures the company’s liquidity, specifically the ratio of a company's total cash and cash
equivalents to its current liabilities.

https://www.investopedia.com/terms/c/cash-ratio.asp

profitability ratio

This ratio assesses a firm’s ability to generate earnings relative to its revenue, operating costs, balance
sheet assets, or shareholders' equity over time, using data from a specific point in time.

https://www.investopedia.com/terms/p/profitabilityratios.asp

Net profit margin


This ratio measures how much net income or profit is generated as a percentage
of revenue.
https://www.investopedia.com/terms/n/net_margin.asp

Gross profit margin

This ratio assess a company's financial health by calculating the amount of money left over from product
sales after subtracting the cost of goods sold

ROA

This ratio indicates how profitable a company is relative to its total assets.
https://www.investopedia.com/terms/r/returnonassets.asp

ROE

This ratio measures the financial performance calculated by dividing net


income by shareholders' equity. 
https://www.investopedia.com/terms/r/returnonequity.asp

EBITDA
This ratio measures a company's operating profit as a percentage of its revenue. 
https://www.investopedia.com/terms/e/ebitda-margin.asp

Interest coverage
This ratio determines how easily a company can pay interest on its outstanding
debt.
https://www.investopedia.com/terms/i/interestcoverageratio.asp
Solvency Ratio

This ratio indicates whether a company’s cash flow is sufficient to meet its long-
term liabilities and thus is a measure of its financial health.
https://www.investopedia.com/terms/s/solvencyratio.asp

i. Debt to Equity Ratio

This ratio evaluates a company's financial leverage and is calculated by dividing a company’s total
liabilities by its shareholder equity.

https://www.investopedia.com/terms/d/debtequityratio.asp

Equity Ratio
This ratio measures the amount of leverage used by a company. It determines how successfully a firm
manages its debts and funds its asset requirements by looking at asset investments and equity.

https://corporatefinanceinstitute.com/resources/knowledge/finance/equity-ratio/

i. Debt Ratio

This ratio measures the extent of a company’s leverage.


https://www.investopedia.com/terms/d/debtratio.asp

Return on Capital Employed

This ratio assesses a company's profitability and capital efficiency. This ratio can help to understand how
well a company is generating profits from its capital as it is put to use.

https://www.investopedia.com/terms/r/roce.asp

a. Efficiency

This ratio measures a company's ability to use its assets to generate income. 
https://www.investopedia.com/terms/e/efficiencyratio.asp

i. Asset Turnover Ratio

This ratio measures the efficiency of a company's assets in generating revenue


or sales.
https://www.investopedia.com/terms/a/assetturnover.asp

i. Accounts Receivable Turnover Ratio

https://www.investopedia.com/terms/r/receivableturnoverratio.asp

i. Working Capital Turnover

This measures how efficiently a company is using its working capital to support


sales and growth
https://www.investopedia.com/terms/w/workingcapitalturnover.asp

i. Equity Turnover

This helps in deciding whether the company is creating enough


revenues to make sure it worth for the shareholders to hold the equity
of the company.
https://www.wallstreetmojo.com/equity-turnover-ratio/

i. Accounts Payable Turnover

This shows how many times a company pays off its accounts payable during a
period.
https://www.investopedia.com/terms/a/accountspayableturnoverratio.asp
1. Common Sizing

This displays items on a financial statement as a percentage of a common base


figure.
https://www.investopedia.com/articles/investing/111413/commonsize-analysis-financial-
statements.asp

Balance Sheet
This reports a company's assets, liabilities, and shareholder equity.
https://www.investopedia.com/terms/b/balancesheet.asp

Income Statement

This gives useful information about a company's operations, managerial


efficiency, underperforming sectors, and performance in comparison to industry
peers.
https://www.investopedia.com/terms/i/incomestatement.asp

1. Horizontal Analysis or Trend Analysis

This is used in the review of a company's financial statements over multiple


periods.
https://www.investopedia.com/terms/h/horizontalanalysis.asp

Breakeven

 This tells you how many units of a product must be sold to cover the fixed and
variable costs of production.
https://www.investopedia.com/terms/b/breakevenanalysis.asp

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