Financial ratios are powerful tools to help summarize financial statements and the health of a company. Browse Investopedia’s expert-written library to learn more.

Smart investors use financial ratios to analyze a company's financial performance before making an investment. Financial ratios reveal how a company is financed, how it uses its resources, its ability ...

Glenn Wilkins is a journalist for Baystreet.ca. He has 30+ years of journalism experience in various media outlets. Natalya Yashina is a CPA, DASM with over 12 years of experience in accounting ...

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Nasdaq provides Price/Earnings Ratio (or PE Ratio) and PEG ratio for stock evaluation. Financial analysts and individual investors use PE Ratio and PEG ratios to determine the financial performance of ...

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...

Financial ratios are tools used to assess the relative strength of companies by performing simple calculations on items on income statements, balance sheets and cash flow statements. Ratios measure ...