Ratio Analysis

Ratio analysis is indeed a crucial tool for evaluating a company's financial performance and health. It provides valuable insights into the firm's ability to pay interest and repay debts, as well as its overall creditworthiness. This information is not only vital for investors and analysts but also for prospective borrowers who need to demonstrate their financial capacity to meet their obligations.

Key ratios which are roughly used,

Current Ratio, Leverage Ratio, Leverage Ratio, Liquidity Ratio, Debt Equity Ratio