1. Liquidity Ratio: A financial ratio that measures a company’s ability to meet its short-term obligations by assessing its ability to convert assets into cash quickly.
2. Current Ratio: A ratio that compares a company’s current assets to its current liabilities, providing insight into its ability to cover short-term obligations.
3. Quick Ratio: Also known as the acid-test ratio, it measures a company’s ability to pay off its current liabilities using its most liquid assets.
4. Debt-to-Equity Ratio: A financial ratio that compares a company’s total debt to its shareholders’ equity, indicating the proportion of financing provided by creditors versus shareholders.
5. Return on Assets (ROA): A ratio that measures a company’s profitability by evaluating its ability to generate earnings from its total assets.
6. Return on Equity (ROE): A ratio that assesses a company’s profitability by measuring its ability to generate returns for its shareholders based on their invested equity.
7. Gross Profit Margin: A ratio that indicates the percentage of revenue remaining after deducting the cost of goods sold, providing insight into a company’s ability to generate profits.
8. Net Profit Margin: A ratio that measures a company’s profitability by evaluating the percentage of revenue remaining after deducting all expenses, including taxes and interest.
9. Earnings per Share (EPS): A ratio that calculates the portion of a company’s profit allocated to each outstanding share of common stock, providing insight into its profitability on a per-share basis.
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10. Price-to-Earnings Ratio (P/E Ratio): A ratio that compares a company’s stock price to its earnings per share, helping investors assess its valuation relative to its earnings.
11. Dividend Yield: A ratio that measures the annual dividend income generated by a company’s stock relative to its market price, providing insight into the return on investment for shareholders.
12. Asset Turnover Ratio: A ratio that evaluates a company’s efficiency in utilizing its assets to generate sales revenue.
13. Inventory Turnover Ratio: A ratio that measures the number of times a company’s inventory is sold and replaced within a given period, indicating its efficiency in managing inventory.
14. Accounts Receivable Turnover Ratio: A ratio that assesses a company’s effectiveness in collecting payments from its customers by measuring the number of times accounts receivable are collected and replaced within a specific period.
15. Debt Ratio: A ratio that compares a company’s total debt to its total assets, indicating the proportion of financing provided by creditors.
16. Equity Ratio: A ratio that measures the proportion of a company’s total assets financed by shareholders’ equity, indicating the level of financial leverage.
17. Times Interest Earned Ratio: A ratio that evaluates a company’s ability to meet its interest payments by comparing its earnings before interest and taxes (EBIT) to its interest expense.
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18. Operating Cash Flow Ratio: A ratio that assesses a company’s ability to generate cash from its core operations by comparing its operating cash flow to its current liabilities.
19. Price-to-Book Ratio (P/B Ratio): A ratio that compares a company’s stock price to its book value per share, providing insight into its valuation relative to its net assets.
20. Market Capitalization: The total value of a company’s outstanding shares of stock, calculated by multiplying the current stock price by the number of shares.
21. Working Capital: The difference between a company’s current assets and current liabilities, representing its short-term liquidity position.
22. Debt Service Coverage Ratio: A ratio that measures a company’s ability to meet its debt obligations by comparing its operating income to its total debt service.
23. Gross Margin: A ratio that indicates the percentage of revenue remaining after deducting the cost of goods sold, providing insight into a company’s profitability.
24. Operating Margin: A ratio that measures a company’s operating income as a percentage of its revenue, indicating its profitability from core operations.
25. Return on Investment (ROI): A ratio that evaluates the profitability of an investment by comparing the gain or loss relative to the cost of the investment.
26. Price/Sales Ratio: A ratio that compares a company’s stock price to its revenue per share, providing insight into its valuation relative to its sales.
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27. Free Cash Flow: The cash generated by a company’s operations after deducting capital expenditures, providing insight into its ability to invest, pay dividends, or reduce debt.
28. Dividend Payout Ratio: A ratio that measures the proportion of a company’s earnings distributed as dividends to shareholders.
29. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company’s operating performance that excludes non-operating expenses, providing insight into its profitability before accounting for financing and tax-related factors.
30. Price/Cash Flow Ratio: A ratio that compares a company’s stock price to its cash flow per share, providing insight into its valuation relative to its cash flow generation.
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