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Business Ratios

oboloo Glossary

Business Ratios

Business Ratios are mathematical expressions that describe the relationship between two or more financial metrics and provide insights into a company’s performance. For example, an increase in a company’s debt-to-equity ratio may indicate greater risk and vice versa. By tracking these ratios over time, businesses can gain valuable insight into their financial health and make adjustments when necessary. Ratios can also be used to compare similar companies in different industries to identify potential investment opportunities. Whether you’re analyzing current trends or plotting future strategy, business ratios offer a clear snapshot of your financial picture.

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