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13.11: Introduction to Financial Ratios

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    What you’ll learn to do: use financial statements to calculate basic financial ratios to measure the profitability and health of a business

    Financial ratios allow consumers of financial information to compare how companies are doing relative to their industry or even how they are faring from one period (month, quarter, year) to another. For the purposes of this course, you will be working with just a couple of these ratios—namely liquidity and profitability. There are lots of other financial ratios, but you can save those for a time when you take full courses in finance and accounting.

    Contributors and Attributions

    CC licensed content, Original
    • Introduction to Financial Ratios. Authored by: Linda Williams and Lumen Learning. License: CC BY: Attribution

    13.11: Introduction to Financial Ratios is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.

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