Financial Ratios
Financial ratios are used to find out the overall financial health of the company. When you have the financial statements of the company, you can use date from them to evaluate how the company is doing, and more importantly, how it might be performing in the future with financial ratios.
There are some broad categories of ratios, and it is not only useful for outside investors and analysts. The people inside the organization can also find out how the company is performing using the different ratios.
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