Industry Analysis: Finding Financial Ratios

Ratio analysis involves using numerical information from company financial statements to determine key relationships. Ratios for specific time periods may be evaluated against ratios from other time periods for both internal and external comparative purposes.

Ratio analysis can be used to assess risk, estimate value, document trends, and to conduct an evaluation of a company against similar companies in the same industry.

Common ratios included in ratio analysis are quick ratio, current ratio, earnings per share ratio, debt to equity ratio, and price-earnings ratio. To find out more information about these ratios or ratio analysis consult a financial dictionary or glossary, such as the resources on this page.