Financial ratios are used to measure company performance, which is useful when comparing multiple companies or a company to its industry. There are numerous ratios that can be computed. For a more complete explanation of financial ratios, consult the following sources:
For a more complete explanation of how the RMA eStatement Studies ratios are calculated and displayed, refer to the "About eStatement Studies" tab in the eStatement Studies library database or to the RMA Financial Ratio Benchmarks: Definition of Ratios.
Encyclopedia of Small Business from the Gale Virtual Reference Library "contains detailed articles and overviews of all the key information needs of small business users, including financing; financial planning; business plan creation; market analysis; sales strategy; tax planning and more." (From the Encyclopedia of Small Business)
Almanac of Business and Industrial Financial Ratios is compiled from the tax returns filed with the IRS. It covers millions of active corporate federal income tax returns, including those owned by foreign persons. Data is presented in 13 categories following the ESIC, Enterprise Standard Industrial Classification.