These ratios are key tools for investors, managers and anyone interested in understanding the financial health of an organization.
What are financial ratios?
Financial ratios or accounting ratios are coefficients that provide measurement and comparison data and are used to understand the financial status of a business.
These figures provide a philippines country code mobile number clearer view of specific aspects of a company's financial performance . They are used to analyse liquidity, profitability, operational efficiency and financial strength.
In other words, they are key indicators that you must take into account when making important decisions.
Type of financial ratios by category
These are traditionally analysed in homogeneous groups to obtain a complete overview of a specific point. They are usually divided between economic and financial.
However, each company must decide which financial ratios are most relevant to measure the quality of the company's management and planning.
There are many different types of ratios and it is important to know how to choose. Some of the most important ones, which should be common to any type of business, are the following.
