An in-depth look at accounting ratios, which are vital tools in financial statement analysis to assess a company's performance and position.
Common-size financial statements are a method of analyzing and comparing financial statements by expressing individual elements as percentages of the total. This allows for easier comparison across companies and industries.
A financial ratio is a comparative figure that helps in analyzing the financial health, performance, and viability of a company. Very often, they are used to make informed business and investment decisions.
Return on Assets (ROA) is an accounting ratio that measures the amount of profit generated during an accounting period as a percentage of the assets held by a company. It provides insights into how efficiently a company is utilizing its assets to produce profit.
Return on Capital Employed (ROCE) is an accounting ratio that measures an organization's profitability and efficiency in using its capital. It is expressed as a percentage of profit relative to the capital employed.
