What are the main uses of financial ratios? Financial ratios are widely used in financial analysis to determine how companies are performing internally and/or relative to one another. These ratios ...

She is a FINRA Series 7, 63, and 66 license holder. Thomas Barwick/Getty Images The financial ratios of companies in the retail industry assist management with their selling operations.

In today’s fast-paced business environment, understanding and mastering financial analysis is critical for effective decision ...

Bruns, William J., Jr. "Introduction to Financial Ratios and Financial Statement Analysis." Harvard Business School Background Note 193-029, August 1992. (Revised September 2004.) ...

Palepu, Krishna G., and Paul M. Healy. Business Analysis and Valuation: Using Financial Statements, Text and Cases. 5th ed. Cengage Learning, 2013.

But to really dig down into the valuation of a stock you'll want to understand some key financial ratios to compare the health of a company with its peers, its industry and itself over time.