Financial ratio
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A financial ratio is a ratio of two numbers of reported levels or flows of a company. It may be two financial flows categories divided by eachother (profit margin, profit/revenue). It may be a level divided by a financial flow (price/earnings). It may be a flow divided by a level (return on equity or earnings/equity). The numerator or denominator may itself be a ratio (PEG ratio).
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Ratios
Flow-to-flow
- Comp ratio (compensation expense / revenue)
- Efficiency ratio (operating expense / revenue)
- Gross margin
- Non-comp ratio (non-compensation expense / revenue)
- Operating leverage
- Operating margin
- Pretax margin (pre-tax earnings / revenue)
- Profit margin (return on sales)
Level-to-level
- Debt to equity ratio
- Shareholders' equity ratio (shareholders' equity / all equity (shareholder's equity and all others' equity))
Ratio-to-ratio
To cash flow
- Cash flow return on investment (CFROI)
- Cash return on gross investment (CROGI)
To earnings
- Return on assets (ROA)
- Return On Equity (ROE)
- Return On Capital (ROC)
- Risk Adjusted Return On Capital (RAROC)
- Return On Capital Employed (ROCE)
- Return On Investment (ROI)
- Return On Net Assets (RONA)
- Return on revenue (ROR) (return on sales) (ROS)
To market cap
- Price/earnings ratio
- Price/sales ratio
- Price/tangible assets ratio
- Price/intangible assets ratio
- Price/equity ratio ("price/book ratio")