Ratio Analysis

Ratios used in financial analysis compare companies to or within an industry. We have listed groups of commonly used ratios with links to examples, explanations, and formulas. Continue reading

Study Sheet of Liquidity Ratios

Learn about liquidity ratios (current ratio and quick ratio) using this printable Smartacus Study Sheet. Continue reading

Quick Ratio

This interactive tutorial explains the Quick Ratio concept, putting the ratio into its proper context, by walking you through the calculations. It also shows you where to find each value on the corresponding financial statement, and even gives you the opportunity to enter your own values. Continue reading

Current Ratio

This interactive tutorial explains the current ratio by walking you through the steps, including where to find Current Assets and Current Liabilities on the Balance Sheet. It even lets you use your own numbers, so you can check your homework answers! Continue reading

Profitability Ratios Cramlet Series Review

Most of us (with the exception of majors and those who love to work with numbers) won’t take Finance unless we have to. We reluctantly wade through the classes hoping that the number junkies understand it all, and praying that Continue reading

Ratio Analysis: Concept and Limitations

Dear Professor Cram: Can you explain to me the concept of ratio analysis and the limitations of ratio analysis? Thanks! Ken S., Hong Kong Thanks for your question, Ken. In Finance, ratio analysis is generally used to compare the performance Continue reading