5 Key Financial Ratios to Understand How Companies Operate

This is the second introduction to ratio analysis before we dive further into how to compare companies. We provide you with 5 key ratios to use in order to evaluate and know how a company operates. You always want to compare companies to see who is more profitable, more efficient, has more brand value, etc.

We also provide free resource sites to use for your own analysis while doing ratios.

5 Key Ratios:
Activity Ratio
Solvency Ratio
Profitability Ratio
Liquidity Ratio
Valuation

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This is the 2nd of 18 videos that teach Business Finance in Section 7 and is a good starting point if you are new to Finance or need a refresher.

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