Financial Ratios

From Open Risk Manual


Financial Ratios are derived measures (ratios) capturing the economic and financial condition of an entity starting from more primary financial inputs (e.g. from financial statements, balance sheets or other formal representations).


The key desired objective and benefit of using a ratio instead of the underlying metrics is to obtain a scale independent metric, one that does not depend on the size of the entity. Ratios are used widely in financial analyses, also in the Risk Analysis of Credit Risk

List of Financial Ratios

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