The 5 Financials Ratios FP&A Professionals Must Master
January 26, 2023
The Corporate Finance Institute (CFI) has released a valuable eBook on Financial Ratios.
To begin, what is a financial ratio?
The eBook offers the following definition:
Corporate finance ratios are quantitative measures that are used to assess businesses. These ratios are used by financial analysts, equity research analysts, investors, and asset managers to evaluate the overall financial health of businesses, with the end goal of making better investment decisions. Corporate finance ratios are also heavily used by financial managers and C-suite officers to get a better understanding of how their businesses are performing.
This eBook covers 5 categories of financial ratios:
- Profitability
- Leverage
- Efficiency
- Liquidity
- Valuation