Financial ratios

Financial ratios are grouped into the following categories:

  • Liquidity ratios
  • Leverage ratios
  • Efficiency ratios
  • Profitability ratios
  • Market value ratios

Users of financial ratios include parties external and internal to the company:

  • External users: Financial analysts, retail investors, creditors, competitors, tax authorities, regulatory authorities, and industry observers
  • Internal users: Management team, employees, and owners