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Financial ratios

Financial ratios are used to measure and evaluate company performance by comparing items on financial statements. On this page you can find quick links to ratio calculators, guidance and formulae.

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Expert help for your enquiries and research.

Examining Accounts: Business Ratios
HMRC manual EM3080 for reviewing accounts as part of an investigation. The manual provides detailed explanations for a selection of business ratios. Please note that some passages of text within the manual are withheld under exemptions to the Freedom of Information Act 2000.

Financial Ratio Analysis
A comprehensive collection of materials on ratio analysis hosted on the biz/ed site. Topics covered include profitability, rate of return, working capital management (liquidity, asset usage, stock/debtors/creditors), gearing and investor ratios. The site also includes a financial ratios database.

Fourteen Key Business Ratios Used by D&B
A table showing the 14 key financial business ratios, with explanatory notes, used by Dun & Bradstreet to measure a company's solvency, efficiency and profitability.

Ratio Analysis Equations for Accountants
A collection of formulae for use by accountants and analysts, compiled by Duncan Williamson.

Understanding Financial Ratios
Explanation produced by Company Partners of liquidity, solvency, efficiency and profitability ratios with guidance on the types of information they can be used to analyse and how to use them. The page also looks at some limitations of ratio analysis.

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