Financial Ratios
Financial ratios help you evaluate a company's performance and compare it to its industry average or other similar businesses in the industry. Ratios measure the relationship between two or more components of financial statements. They are used most effectively when results over several periods are compared.
Some of the most common ratios are Debt-to-Equity Ratio, Current Ratio, Quick Ratio, P/E (price to earnings) ratio, and Return on Equity (ROE).