What is 'Ratio Analysis'?

Modified on Tue, 19 Jun, 2018 at 9:20 AM

A ratio analysis is a quantitative analysis of information contained in a company’s financial statements. Ratio analysis is used to evaluate various aspects of a company’s operating and financial performance such as its efficiency, liquidity, profitability and solvency.

Ratio analysis is a cornerstone of fundamental analysis.


Source : Investopedia


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