Financial ratios are powerful tools to help summarize financial statements and the health of a company. Browse Investopedia’s expert-written library to learn more.

Jared Ecker is a researcher and fact-checker. He possesses over a decade of experience in the Nuclear and National Defense sectors resolving issues on platforms as varied as stealth bombers to UAVs.

There are dozens of financial ratios and their meanings help business owners evaluate the financial health of a company. Financial ratios can be broken into six key areas of analysis: liquidity, ...