Ratio types/categories used to analyze a company
What is valuation ratios?
The valuation ratio is a set of ratios that use to determine a share of a company is cheap or expensive. Most of the valuation ratios are compared with its industry average to understand the position of the share of a company.
What is profitability ratios?
Profitability ratios are a set of ratios that use to evaluate the company's ability to generate profit from its operations.
What is growth rate ratios?
The growth rate ratios express the growth of a company's earnings or revenues within a specific period.
What is financial strength ratios?
The financial strength ratios help investors to identify the financial strength and position of a company.
What is management effectiveness ratios?
Management effectiveness ratios help to identify the effectiveness of a company's management. Company growth and profitability depend on management decisions, so these ratios will express the company resource utilization and earnings compared to assets, investment, equity, etc. From these comparisons, investors can identify management effectiveness during a certain period of time.
What is liquidity ratios?
The volatility ratios tell you how the share price variation during the current day compared to the previous price variations, and it helps to identify price patterns from historical records.