Financial ratio
Encyclopedia : F : FI : FIN : Financial ratio
A financial ratio is a ratio of two numbers of reported levels or flows of a company. It may be two financial flows categories divided by each other (profit margin, profit/revenue). It may be a level divided by a financial flow (price/earnings). It may be a flow divided by a level (return on equity or earnings/equity). The numerator or denominator may itself be a ratio (PEG ratio).
Contents
Ratios
Flow-to-flow
- Comp ratio (compensation expense /revenue)
- Efficiency ratio (operating expense / revenue)
- Gross margin
- Non-comp ratio (non-compensation expense / revenue)
- Operating leverage
- Operating margin
- Pretax margin (pre-tax earnings / revenue)
- Profit margin (return on sales)
Level-to-level
- Debt to equity ratio
- Current ratio
- Quick ratio
- Shareholders' equity ratio (shareholders' equity / all equity (shareholder's equity and all others' equity))
Ratio-to-ratio
- Price, earnings, growth ratio (PEG ratio)
To cash flow
- Cash flow return on investment (CFROI)
- Cash return on gross investment (CROGI)
To earnings
- Return on assets (ROA)
- Return On Equity (ROE)
- Return On Capital (ROC)
- *Risk Adjusted Return On Capital (RAROC)
- Return On Capital Employed (ROCE)
- Return On Investment (ROI)
- Return On Net Assets (RONA)
- Return on revenue (ROR) (return on sales) (ROS)
To market cap
- Price/earnings ratio PE ratio
- Price/sales ratio
- Price/tangible assets ratio
- Price/intangible assets ratio
- Price/equity ratio ("price/book ratio")
See also
- Business valuation
- Fundamental analysis
- Market-based valuation
- Profitability
- Valuation
- List of valuation topics
- Loan to value ratio, Loan to value, Combined loan to value
- Ratio analysis
- Accounting liquidity
External links
- [Financial Ratios], Explanations with examples
- [Ratio Analysis Tutorial], investopedia.com
- [Ratio Analysis], studyfinance.com
- [Introduction to Financial Ratios], tutor2u
- [Financial Ratio Analysis], biz/ed
- [On the Classification on Financial Ratios.], (1990)
- [A Review of the Theoretical and Empirical Basis of Financial Ratio Analysis], (1994)
- [The Review of the Theoretical and Empirical Basis of Financial Ratio Analysis Revisited], (2005)
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