Guides · Finance

Financial Ratios Basics

Read key financial ratios

Understanding financial ratios means looking at liquidity (current/quick), profitability (gross/operating margin, ROE), efficiency (turnover), and leverage (debt/equity) to compare performance over time or against peers.

financial ratios
current ratio
roe
profit margin
debt/equity

Liquidity

Current/quick ratios show ability to cover short-term obligations.

Profitability

Margins and ROE indicate earning efficiency.

Leverage/Efficiency

Debt/equity and turnover ratios reveal capital and usage efficiency.

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