List of Financial Ratios: List, Types, Class, and Usages

financial ratios list

Colombia, Chile and Brazil are not only the region’s top-ranked countries; they are also the most improved. Five out of 21 countries in this region have seen at least a 1 percentage-point improvement How to Set Up Startup Accounting Software for the First Time in the share of parliamentary positions held by women. At 69.7% parity in Economic Participation and Opportunity, Europe stands third behind North America and East Asia and Pacific on this dimension.

financial ratios list

Merely a quarter of the 146 economies included in this year’s edition score between 70%-80% on this indicator. The lowest-ranking countries on this dimension are Croatia (49.7% of the gap closed) and Lesotho (49.4%). Compared to last year’s performance, Bolivia, El Salvador and South Africa registered the largest improvements in score, of 5 percentage points or more.

Liquidity Ratios

If the value is below one, it indicates that the company holds less debt. We’ve covered a lot of financial ratios on Study Finance (too many to list all on one page). Solvency and leverage ratios measure how well a company can meet its long-term debt commitments. Qatar’s lower overall ranking is driven by relatively lower parity in terms of healthy life expectancy.

financial ratios list

It shows whether a company has enough current assets to pay off its short-term borrowings. Liquidity ratios measure an organization’s capacity to meet its debt commitments utilizing its current assets. If a company has $100,000 in net annual credit sales, for example, and $15,000 in average accounts receivable its receivables turnover ratio is 6.67. The higher the number is, the better, since it indicates the business is more efficient at getting customers to pay up. Return on assets or ROA measures net income produced by a company’s total assets.

Everything You Need To Build Your Accounting Skills

Take note that many of the ratios are often expressed in percentage – just multiply them by 100%. Financial ratio analysis is performed by comparing two items in the financial statements. The resulting ratio can be interpreted in a way that is more insightful than looking at the items separately. Among the 146 countries included this year are a set of 102 countries that have been covered in all editions since the inaugural one in 2006. Scores based on this constant set of countries are used to compare regional and global aggregates across time.

This article will look into five major categories of financial ratios that you can use to evaluate your company’s financial health. Financial ratios can help you pick the best stocks for your portfolio and build your wealth. We’ve briefly highlighted six of the most common and the easiest to calculate. A quick ratio of less than 1 can indicate that there aren’t enough liquid assets to pay short-term liabilities.

List of Efficiency Ratios: Formula & Analysis

Net income is always the amount after taxes, depreciation, amortization, and interest, unless otherwise stated. There is no international standard for calculating the summary data presented in all financial statements, and the terminology is not always consistent between companies, industries, countries and time periods. EPS is the ratio of a company’s net earnings and its total outstanding shares. It is also called an activity ratio because it measures how efficiently a company is using its assets to generate sales for the organization. ROCE for capital-intensive businesses is generally very low compared to asset-light companies making the same amount of profits because a capital-intensive business generally has more assets. ROE is the value of profits generated by a company using shareholders’ funds.

  • In 67 other countries, women have never served as head of state in the past 50 years.
  • The Economic Participation and Opportunity subindex now stands at 59.8% based on the 102 countries in the constant sample (non-constant score 60.1%).
  • In addition, consider how companies with varying product lines (i.e. some technology companies may offer products as well as services, two different product lines with varying impacts to ratio analysis).
  • Nineteen countries, including the populous Nigeria, Ethiopia and the Democratic Republic of the Congo, have improved on this subindex by 0.5 percentage points or more.

They can be very useful when evaluating and comparing the fundamentals of various companies, especially when you’re looking at them in terms of potential investment opportunities. The best way to use P/E is often as a relative value comparison tool for stocks you’re interested in, or you might want to compare the P/E of one or more stocks to an industry average. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. Dividend Yield is usually calculated by analysts to calculate return on investment. Wasteful utilization of assets like automobiles, land, and buildings brings about superfluous costs that should be disposed of.

Asset-Coverage Ratio

Combined, they have almost doubled the parity level on Political Empowerment (26.3%) since the previous edition. There has also been marginal improvement on the Economic Participation and Opportunity dimension. While parity in technical positions is sustained, parity in estimated incomes is at 62.8%, despite registering some improvement Nonprofit Accounting Best Practices and Essential Tips compared to the 2022 edition. There is full parity in Health and Survival outcomes, based on sex ratio at birth and healthy life expectancy. On the Educational Attainment subindex (99.2%), apart from enrolment in primary education, there is full gender parity in literacy rate, secondary education and tertiary education.

  • ​The first category of ratios included in our list of financial ratios is the liquidity ratio.
  • Organizations can also utilize financial ratios to check whether there is a trend in financial figures.
  • The higher the ROE, the better the company is at generating profits using shareholder equity.
  • However, women have been representing 50% or more of technical positions since the inaugural 2006 edition.
  • It has improved by 1.4 percentage points and eight positions since the last edition, marking a partial recovery towards its 2019 (66.8%) parity level.

Leave a Reply

Your email address will not be published. Required fields are marked *

× How can I help you?