The efficiency ratio is a metric used in financial analysis to evaluate how effectively a company manages its operational expenses in relation to its revenue. The efficiency ratio provides important insights into the firm’s profitability and ability to convert revenues into profits over the long run. The efficiency ratio is calculated by dividing a company’s […]

Operating ratio is a financial metric that provides insights into a company’s operational efficiency and profitability. The operating Ratio measures how much of each rupee of a company’s revenues is spent on operating expenses. A lower operating ratio indicates a company is more efficient at converting sales into profits. The operating Ratio is calculated by […]

Profit after tax, also known as net income or net profit, is a key financial metric that companies use to measure performance and profitability. PAT refers to the total earnings remaining after deducting all expenses, taxes, and other mandatory payments from revenues generated over a period of time, usually a quarter or financial year. Calculating […]

Profitability ratios are key financial metrics that provide valuable insights into a company’s ability to generate earnings. Profitability ratios examine different aspects of a company’s income generation, cost management, and use of assets and equity to produce returns. The most commonly analyzed profitability ratios include margins such as gross profit margin, operating margin and net […]

EBITDA is a key financial metric used by analysts and investors to evaluate the operating performance and profitability of companies. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It provides a measure of a company’s core operating profits by excluding non-operating expenses related to financing and accounting decisions. By stripping out interest, tax, […]

Valuation ratios are key metrics used by investors to evaluate the fair value of a company’s stock price relative to its financial performance. Valuation ratios like price-to-earnings, price-to-book value, and price-to-sales allow investors to compare a stock’s market price against metrics like earnings, assets, and revenues. This helps determine if a stock appears undervalued, overvalued, […]

Liquidity ratios are important financial metrics that provide insight into a company’s short-term financial health and ability to meet its near-term obligations. Liquidity ratios evaluate the level of liquid or current assets available to cover a company’s current liabilities that are due within one year. A higher liquidity ratio indicates a company is better equipped […]

Operating ratio is a financial metric that provides insights into a company’s operational efficiency and profitability. The operating Ratio measures how much of each rupee of a company’s revenues is spent on operating expenses. A lower operating ratio indicates a company is more efficient at converting sales into profits. The operating Ratio is calculated by […]

Leverage ratios are important financial metrics that provide insights into a company’s capital structure, debt levels, and ability to meet financial obligations. Leverage ratios help assess the balance between risk and return in a company’s operations by measuring how much debt is used relative to equity. Common leverage ratios analyzed by investors include the debt-to-equity […]