Financial Ratios

Primary purpose of this article is to analysis Financial Ratios. Financial ratio is a relative magnitude of two selected numerical values obtained from an enterprise’s financial statements. Financial ratios may be used by managers in just a firm, by current along with potential shareholders or owners of a firm, and by the firm’s creditors. Financial ratios usually are mathematical relationships concerning different items from the financial statements. They are quite simple in order to calculate and study, but require that you have some basic know-how about computers financial statements. Here briefly describe sone financial ratios: Liquidity ratios, Leverage ratios, Debt to Equity ratio and Current ratio.