financial ratios

Definition

Tools for an accountant to evaluate the performance of a company. One type of ratio widely used is the price-earnings ratio.

Use financial ratios in a sentence

The financial ratios provided key metrics that allowed for a comparison of similar companies which we used often for insight.

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By analyzing the financial ratios, Steven was able to determine the rates at which the company was gaining and losing money throughout time.

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When he was looking carefully at the company's financial woes, the accountant made sure to take a hard look at the financial ratios of the company to see where the problem lie.

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