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Commonly used in accounting analysis, a Financial Ratio shows a relationship between two elements of a firm's financial statements
A financial ratio is a measure of the relationship between two or more components of a company's financial statements. These metrics provide a quick and easy way to track performance, benchmark against industry peers, identify problems, and proactively implement solutions.
They are primarily used by outside analysts to determine various aspects of the company, such as B. Profitability, liquidity, and solvency.
a financial ratio is divided into five types: liquidity metrics, leveraged financial metrics, efficiency metrics, profitability metrics, and market valuation metrics.
Disclaimer: Learn more about financial ratios here https://brainly.com/question/21631170
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