What are financial ratios used for?

The numbers found on a company’s financial statements – balance sheet, income statement, and cash flow statement – are used to perform quantitative analysis and assess a company’s liquidity, leverage, growth, margins, profitability, rates of return, valuation, and more. Financial ratios are grouped into the following categories:

What are the types of financial ratios?

Types of Financial Ratios Accounting Ratios Balance Sheet Ratios Balance Sheet Analysis Trend Analysis Trend Analysis Horizontal Analysis Horizontal Analysis Comparative Balance Sheet Comparative Income Statement Comparative Statement Common Size Analysis Vertical Analysis Formula Vertical Analysis Of Income Statement Common Size Balance Sheet

What is ratio analysis / financial statement analysis?

Ratio analysis is the quantitative interpretation of the company’s financial performance. It provides valuable information about the organization’s profitability, solvency, operational efficiency and liquidity positions as represented by the financial statements. This is the most comprehensive guide to Ratio Analysis / Financial Statement Analysis.