What are the 6 basic financial ratios and what do they reveal?

Modified on Tue, 19 Jun 2018 at 09:40 AM

Ratio - the term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that, properly understood and applied, can help make you a more informed investor. (Find out how this method can be applied strategically to increase profit. Check out Fundamental Analysis For Traders.)

1. Working Capital Ratio

2. Quick Ratio

3. Earnings per Share

4. Price-Earnings Ratio

5. Debt-Equity Ratio 

6. Return on Equity 

Source : Investopedia

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