Financial Ratios

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What are Financial Ratios?

Financial ratios are ratios derived from the company’s financial statements. These ratios help the investor in filtering or evaluating the company.

So what are the different financial ratios?

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ROCE

ROCE stands for Return on Capital Employed. As the name declares this ratio measures a company’s profitability relative to the total capital it employs

ROE

ROE stands for Return on Equity. This ratio measures a company’s profitability relative to its shareholder’s equity.

ROI

ROI stands for Return on Investment. This ratio is used to evaluate the efficiency or profitability of an investment. It helps compare the effectiveness of different investments.

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10percentfinance.com - Important ratios for Evaluation

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