FFinance glossary

Financial Ratio

Quick definition

An indicator of financial health.

Overview

A financial ratio is a numerical indicator calculated from the balance sheet or income statement to analyse a company's financial health and performance.

Common uses

Comparative analysis
Assessing solvency
Performance monitoring

Examples of use in small businesses

Calculating liquidity ratios
Analysing profitability ratios
Monitoring financial risks

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Overview

Common uses

Examples of use in small businesses

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