Financial Ratio

Financial Ratios
All investors who are interested in should be able to calculate basic financial ratios from memory. The following resources have been taken from the Investing for Beginners site, they will teach you how to calculate financial ratios using a lot based on annual reports and financial statements. Each ratio has some examples for reference purposes.
An Introduction to Capital Structure
a company's capital structure is one of the most important decisions management must make because it influences everything from the company's risk profile of financial ratios such as return on equity and interest coverage. In resources, we examine why the capital structure and components that form the capital structure of any company, no matter how large or small.
Price to Cash Flow Ratio
Some investors chose to focus on the financial ratios for the known rates of cash flow ratios, rather than the more popular price earnings ratio (or p / e ratio for short). Why do they prefer to price ratio of cash flow and why is better for some companies and industries from a colleague who is more famous? Sit back, relax, and grab a cup of coffee because you'll learn everything you ever wanted to know about why it is more important than the price earnings ratio.
5 Categories of Financial Ratios
There are five categories of financial ratios fall into the most computation. Here, we'll explain what they are to help you understand how to manage your finances his own analysis when valuing a stock or bond.
Using the PEG Ratio Stock Find Hidden Gems
The PEG ratio is a modified form of the price earnings ratio and can help you factor in the growth in corporate earnings per share to determine relative value. Many of the most successful investor Peter Lynch, including using the ratio of PEG to help value stocks.
Enterprise Value - Determining the Takeover Value of a Company
Enterprise value is the value of corporate takeovers. Enterprise value is calculated by adding the market capitalization of the corporation, preferred stock, and outstanding debt together and then subtracting out cash and cash equivalents
Return on Equity - DuPont Model
Return on equity, or ROE, consisting of three essential components in the model of DuPont. Discover how to calculate return on equity using all three components in this article.
Asset Turnover Ratio - Financial Ratio # 1
Financial asset turnover ratio calculates the total sales for each dollar of assets the company has. These measures of efficiency in using assets of the company.
Current Ratio - Financial Ratio # 2
Current ratio is one of the most famous of all financial ratios. It serves as a test of the company's financial strength and efficiency [relative, whether the company has too much cash on hand or not enough?]
Debt to Equity Ratio - Financial Ratio # 3
Financial debt to equity ratio is a measure of total debt compared with equity companies owe shareholders. This tells you how much capitalization is the owner vs. creditors.
Gross Profit Margin Ratio - Financial Ratio # 4
This financial ratio tends to remain stable over time. significant fluctuations may be signs of financial fraud or misappropriation.
Gross Profit - Financial Ratio # 5
Gross profit is total revenue minus the cost of generating revenue. An investor must know the gross profit companies to calculate financial ratios, known as gross profit margin.
Interest Coverage Ratio - Financial Ratio # 6
Interest coverage ratio has major implications for bonds and preferred stock investors in particular. These financial ratios tell investors how many times earnings before interest and taxes to pay, or "closing", the company makes interest payments on debt.
Inventory Turn Ratio - Financial Ratio # 7
This financial ratio tells an investor how many times a business turned out to inventory during the period of time. This allows you to see if the company has too many assets are tied up in inventory and heading for financial trouble.
Financial Ratios Net Profit Margin - Financial Ratio # 8
Net profit margin tells you how much money the company makes for every $ 1 in revenue.
Operating Profit Margin Ratio - Financial Ratio # 9
Operating profit margin is a financial ratio that measures the efficiency of management.
Quick Test - Financial Ratio # 10
This financial ratio is known as a quick test, acid test, or tests of liquidity; all mean the same thing. Of all the financial ratios, it is most difficult and stringent measures the strength and liquidity of the company.
Turn Receivables Ratio - Financial Ratio # 11
This receivable was financial ratio tells you how many times a company or business that collects receivables during the period of time.
Return on Assets Ratio - Financial Ratio # 12
The results reveal how the assets of financial ratios is a business asset intensive. There are two ways to calculate ROA.
Return on Equity - ROE Financial Ratios - Financial Ratio # 13
Return on equity is the ratio of my financial favorite. This shows how much profit a company that obtained as compared with total shareholders' equity on the balance sheet. For those of you interested in long term investment with rich benefits, the company that has a high return on equity ratio can provide the greatest results. Read and print this article!
Working Capital per Dollar of Sales - Financial Ratio # 14
Financial ratio tells the investor the amount of working capital the company must keep on hand.
Working Capital - Financial Ratio # 15
Working capital is probably much more important than financial ratios. This can be calculated by subtracting current liabilities from current assets.
Financial Ratio Guide
Before you can start investing in individual stocks, you will need to learn how to calculate financial ratios. Even if you decide to get your financial ratios from your broker or financial site, you still need to know what they represent. If not, you may make mistakes and buy into a company with too much debt, not enough money to survive, or low profitability. This guide to reducing the financial ratios that incorrectly predicted ...