Financial Analysis

Types of Ratios

You've probably heard terms like "gross margin" or "return on equity" thrown around when describing a company's financial performance. Both of these terms are examples of financial ratios. These are benchmarks that we use to make assertions about how well a company is doing.

After learning how to read financial statements, financial ratios allow you to put those numbers to work and gain insight on the company.

Thinking in multiples

Explanation of a DCF