Different Types of Financial Ratios in Business and their Significance

Hero Fincorp24 May, 2022Business

So, the best way is to request financial ratios from your accountant. These ratios are calculated on the numbers extracted from your company's P&L statement, balance sheet, and cash flow statement. The ratio illustrates the company's profitability, leverage, liquidity, and market valuation. It could also be used to detect red flags. Now that you know the answer to what are financial ratios, let's move to the different types of ratios in the business.