{"id":8764,"date":"2015-06-24T06:18:50","date_gmt":"2015-06-24T04:18:50","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=8764"},"modified":"2015-06-20T06:19:35","modified_gmt":"2015-06-20T04:19:35","slug":"the-most-commonly-used-financial-ratios","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/the-most-commonly-used-financial-ratios\/","title":{"rendered":"The most commonly used financial ratios"},"content":{"rendered":"<div>There are financial ratios which are more commonly and more often used than others. Such ratios that we have come across are as follows (in no particular order of preference):<\/div>\n<p><!--more--><\/p>\n<ul>\n<li>ROA (net income \/ total or average assets) \u2013 ROA indicates company\u2019s profitability in relation to its assets.<\/li>\n<li>ROE (net income \/ total or average equity) \u2013 ROE indicates the profitability of the money invested into the entity by its shareholders.<\/li>\n<li>ROI (gain from investments less cost of investments divided by cost of investments) \u2013 ROI indicates an efficiency of an investment.<\/li>\n<li>Current ratio (current assets \/ current liabilities) \u2013 Current ratio estimates the ability of a company to pay back its short-term obligations.<\/li>\n<li>Quick ratio (current assets less inventories divide by current liabilities) \u2013 Quick ratio reflects on the company\u2019s ability to meet its short-term obligations with its most liquid assets (that is those assets which are current and are not inventories).<\/li>\n<li>Gross margin (gross profit \/ net income) \u2013 Gross margin indicates how much the company earns from its pure operations (that is net revenue less cost of goods and services sold) before any operational expenses.<\/li>\n<\/ul>\n<div>Obviously, as we\u2019ve always mentioned, your business segment may have other types of ratios relevant for them.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>There are financial ratios which are more commonly and more often used than others. Such ratios that we have come across are as follows (in no particular order of preference):<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-8764","post","type-post","status-publish","format-standard","hentry","category-4-2-financial-ratios"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.1.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"There are financial ratios which are more commonly and more often used than others. Such ratios that we have come across are as follows (in no particular order of preference): ROA (net income \/ total or average assets) \u2013 ROA indicates company\u2019s profitability in relation to its assets. ROE (net income \/ total or average\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Karl\"\/>\n\t<link rel=\"canonical\" href=\"http:\/\/www.officetodo.com\/public\/the-most-commonly-used-financial-ratios\/\" \/>\n\t<meta name=\"generator\" content=\"All in One SEO (AIOSEO) 5.0.1.1\" \/>\n\t\t<script type=\"application\/ld+json\" class=\"aioseo-schema\">\n\t\t\t{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"http:\\\/\\\/www.officetodo.com\\\/public\\\/the-most-commonly-used-financial-ratios\\\/#article\",\"name\":\"The most commonly used financial ratios | Office ToDo\",\"headline\":\"The most commonly used financial 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