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 Profitability Ratios

Basic Earning Power (BEP), Earnings Per Share (EPS), Gross Profit, Profit Margin, Return on Assets (ROA), Return on Equity (ROE), ROA DuPont, and ROE DuPont ratios are all explained on this printable Smartacus Study Sheet. 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