Financial Ratios: Measuring a business

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What is this lesson is about?

How can you measure how well a company is doing? Is it being well managed? Where can it improve? The answer to all these question lies in a deeper understanding of what the balance sheet, cash flow and income statement can tell us and learning to compare the right metrics. In this lesson you'll learn:
• What financial ratios are and why they're important
• Management ratios: Price to book
• Investment ratios: ROA, ROC and ROE

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Courses details

This lesson is part of the Principles of Finance course.

Click on Principles of Finance to learn more.