A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise’s financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
Below are the types and list of financial ratios with formulas: –
- Current ratio
- Quick ratio
- Absolute liquidity ratio
- Cash ratio
- Inventory Turnover Ratio
- Receivables Turnover Ratio
- Capital Turnover Ratio
- Asset Turnover Ratio
- Net Working Capital Ratio
- Cash Conversion Cycle
- Earnings Margin
- Return on Investment
- Return on Equity
- Earnings Per Share
- Operating Leverage
- Financial leverage
- Total Leverage
- Debt-Equity Ratio
- Interest Coverage Ratio
- Debt Service Coverage Ratio
- Fixed Asset Ratio
- Current Asset to Fixed Asset
- Proprietary Ratio
- Fixed Interest Cover
- Fixed Dividend Cover
- Capacity Ratio
- Activity Ratio
- Efficiency Ratio
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