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Market Ratios are useful in measuring investor response to owning a company's shares and also the cost of issuing shares to the public. Almost all of these ratios can be used to take decisions as to whether we should invest in a company's stock or not. The ratios that fall under this category are:
1. Earnings Per Share (EPS)
2. Payout Ratio
3. Dividend Cover
4. P/E Ratio
5. Dividend Yield
6. Cash Flow Ratio
7. Price to Book Value Ratio (P/B or PBV)
8. Price to Sales Ratio
9. PEG Ratio
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∙ 12y ago
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Which financial ratios are used by banks?
1. Liquidity Ratios - Ability of the company to pay off debt 2. Activity Ratios - How quickly a firm can convert its non-cash assets to cash assets 3. Debt Ratios - Ability of the firm to repay long-term debt 4. Profitability Ratios - To Measure the firms use of its assets and control of its expenses to generate an acceptable rate of return 5. Market Ratios - To Measure the investor response to owning a company's stock and also the cost of issuing stock
How do you find stock price of market value ratios?
There are a lot of sites that have the most commonly used valuation metrics for stocks. Sites like Zacks, Yahoo finance and IBD are good. P/E ratios, price to book, PEG ratio and many others are found on those sites.
Which financial ratio analysis will you use to determine where to invest your money?
There are various financial ratios that can help you to assess where to invest your money. A combination of different ratios may help you see the wider picture and help you to decide, if you want to, how to achieve the greatest gain with the lowest risk. Some of these ratios would include: return on capital employed, payback period, gearing, stock turn, debtor days, etc etc Ideally you should examine a range of ratios, taking into account also your own attitude to risk. In addition to considering financial ratios, one should also carefully consider the calibre of the management, the history of the company and their success in quickly adapting to changing economic realities. You should also consider future expectations of the market you are investing in, and your target company's place in that market. And you should assess the competition, and the global economy, and the environment, politically and 'environmentally', in which the business currently operates, and the environment it which it will have to operate in the foreseeable future.
What is a market ratio?
Market Ratios are useful in measuring investor response to owning a company's shares and also the cost of issuing shares to the public. Almost all of these ratios can be used to take decisions as to whether we should invest in a company's stock or not. The ratios that fall under this category are: 1. Earnings Per Share (EPS) 2. Payout Ratio 3. Dividend Cover 4. P/E Ratio 5. Dividend Yield 6. Cash Flow Ratio 7. Price to Book Value Ratio (P/B or PBV) 8. Price to Sales Ratio 9. PEG Ratio
Is there a website you can compare financial ratios of a company with the market and industry ratios?
In the USA you could try http://www.fintel.us or for UK companies you could try http://www.industry-averages.co.uk neither are free however. The problem in lots of cases with 'industry averages' is that they are just based on SIC codes and you end up not comparing like with like unless you are careful.
What is market to book ratio used for?
what is market to book ratios used for?
How many types of ratio?
Generally, there are 4 types of finance ratios, (if thats what you want). (A) LIQUIDITY RATIO (B) LONG TERM SOLVENCY AND STABILITY RATIO (C) PROFITABILITY & EFFICENCY RATIOS (D) INVESTORS OR STOCK MARKET RATIOS.
What are equivlent ratios?
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
Which financial ratios are used by banks?
1. Liquidity Ratios - Ability of the company to pay off debt 2. Activity Ratios - How quickly a firm can convert its non-cash assets to cash assets 3. Debt Ratios - Ability of the firm to repay long-term debt 4. Profitability Ratios - To Measure the firms use of its assets and control of its expenses to generate an acceptable rate of return 5. Market Ratios - To Measure the investor response to owning a company's stock and also the cost of issuing stock
How are ratios classified?
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
Ratios?
Ratios
What are the three types of ratios?
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
What are 3 types of ratios?
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
What are the ratios that name the same comparison?
equivalent ratios are different ratios that name the same comparison
What are the Sources of Data for Financial Ratios?
Financial ratios of all company's can be calculated based on their financial statements that would be declared during their quarterly result announcement. Balance Sheet, Income Statement, Statement of Cashflows, Statement of Earnings etc are some of the documents from which the information required for calculating these financial ratios can be picked up. Also, if the company is listed in the stock market, its current stock price too is used for calculating some of these ratios.
Types of ratios?
1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios
Are ratios percents?
No but percentages are ratios.
