Return on Invested Capital (ROIC) is another popular metric that is used widely in financial analysis. The reason for its...
Formula Working Capital to Sales Ratio = Working Capital / Sales Meaning Stating the working capital as an absolute figure...
As we have seen earlier that there is a wide variety of financial ratios available. They fall into many categories...
Turnover ratios (also known as efficiency ratios) are a very important class of ratios. These ratios are not only used...
Return on Equity (ROE) is probably the most important number in the financial universe. Every company is driven by profit...
Another metric that is widely used by investors to gauge the profitability of a company is Return on Assets (ROA)....
Ratio, as the name suggests, is nothing more than one number divided by the other. However, they become useful when...
Ratio analysis, without a doubt, is amongst the most powerful tools of financial analysis. Any investor, who wants to be...
The quick ratio is a variation of the current ratio. However, a quick ratio is considered by many to be...
The proprietary ratio is not amongst the commonly used ratios. Very few analysts prescribe its usage. This is because in...