What is 'Ratio Analysis'?

A ratio analysis is a quantitative analysis of information contained in a company's financial statements.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Ratio Analysis 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. Breaking it Down: When investors and analysts talk about fundamental or quantitative analysis, they are usually referring to... Read More Related to "Ratio Analysis" How does ratio analysis make it easier to compare different companies? Learn what ratio analysis is, how investors can compare companies within the same sector using ratio analysis and how ratios can simplify evaluating stocks. Read More 6 Basic Financial Ratios And What They Reveal These formulas can help you pick better stocks for your portfolio once you learn how to use them. Read More What is the difference between efficiency ratios and profitability ratios? Learn about efficiency and profitability ratios, what these ratios measure and the main difference between efficiency and profitability ratios. Read More Related Definitions Cash Asset Ratio The cash asset ratio is the current value of marketable securities and cash, divided by the company's current liabilities. Read More Solvency Ratio Solvency ratio is a key metric used to measure an enterprise's ability to meet its debt and other obligations. Read More Price-Earnings Ratio - P/E Ratio The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings. Read More Debt Ratio The debt ratio is a financial ratio that measures the extent of a company's leverage. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: