Ratios can be invaluable tools for making decisions about companies you might want to invest in. They are used by individual investors and professional analysts, and there are a variety of ratios to use. Financial ratios are typically cast into five categories:
- Leverage Ratios
- Liquidity Ratios
- Activity Ratios
- Profitability Ratios
- Market Ratios
![5 Basic Financial Ratios](https://www.magicship.xyz/wp-content/uploads/2021/09/accountingbilufenxi-1024x512.jpg)
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