ratios for investing

7 Smart Investment Ratios Explained

Successful investing is about managing risk, not avoiding it

Benjamin Graham

Investment ratios are used by accountants, CFOs, current and future investors and among others to determine a company’s financial performance. Ratios show the story behind the numbers and can be used to pinpoint your new investment, but they are also used by a company’s management team to establish the current financial status of the firm. When used for the latter purpose, a company will act upon the results found in most cases.

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