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Chapter 1 – Learn Key Financial Ratios

Chapter 1 of 3

1Chapter 1 – Learn Key Financial Ratios

Learning Objectives

After completing this chapter, you will be able to:

  • Understand what financial ratios are.
  • Learn why investors use financial ratios.
  • Identify some of the most important financial ratios.
  • Understand how financial ratios help compare companies.
  • Learn the limitations of using financial ratios.
  • Use financial ratios as part of your investment research.

Test your knowledge

4 practice questions — click any question to expand and answer.