Performing finances is important for many businesses in the world. You must understand ratios because there are many benefits that you can obtain if you can analyze ratios. These financial ratios will help you measure the success of the company.

It can also assess the pros and cons of financial decisions taken. Shareholders’ prosperity (as indicated by the share price) depends on good financial decisions. These financial decisions include investment, and etc.

Financial ratios is a tool for analyzing and measuring company performance using the company’s financial data. Financial data can be taken from financial reports such as income statements, balance sheets, cash flow reports, and other reports. Based on the objective, the financial ratios are divided into four. The following is an explanation of financial ratios and their objectives.

1. Financial Profitability Ratios

Rasio profitabilitas menunjukan kemampuan perusahaan menghasilkan keuntungan (laba).

By using this ratio you can find out …

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