What are the 5 key financial ratios?

Five of the key financial ratios are the price-to-earnings ratio, PEG ratio, price-to-sales ratio, price-to-book ratio, and debt-to-equity ratio.

What are the 4 financial ratios?

Financial ratios are typically cast into four categories:

  • Profitability ratios.
  • Liquidity ratios.
  • Solvency ratios.
  • Valuation ratios or multiples.

What are key business ratios?

Key ratios are the primary financial ratios used to illustrate and summarize the current financial condition of a company. They are produced by comparing different line items from the subject’s financial statements. Analysts and investors use key ratios to see how companies stack up against their peers.

What is Llcr in project finance?

The loan life coverage ratio (LLCR) is a financial ratio used to estimate the solvency of a firm, or the ability of a borrowing company to repay an outstanding loan. LLCR is calculated by dividing the net present value (NPV) of the money available for debt repayment by the amount of outstanding debt.

What is the most important financial ratio?

Return on equity ratio This is one of the most important financial ratios for calculating profit, looking at a company’s net earnings minus dividends and dividing this figure by shareholders equity. The result tells you about a company’s overall profitability, and can also be referred to as return on net worth.

What are the ideal financial ratios?

The ideal current ratio is 2: 1. It is a stark indication of the financial soundness of a business concern. When Current assets double the current liabilities, it is considered to be satisfactory. Higher value of current ratio indicates more liquid of the firm’s ability to pay its current obligation in time.

What is PLCR and LLCR?

Understanding the Project Life Coverage Ratio It ensures the borrower’s ability to pay back the debt. The PLCR is one of many ratios used by lenders; other ratios include the debt service coverage ratio (DSCR) and the loan life coverage ratio (LLCR).

How is Dsra calculated?

Deposits and withdrawals, to and from the DSRA are calculated by comparing the target balance and the opening balance. Release to cashflow (during distress): This is the cash flow release from the available balance in the DSRA to fund the shortfall in CFADS, this is when the DSCR is <1.00x.

What are 3 types of ratios?

The three main categories of ratios include profitability, leverage and liquidity ratios.

What is the best financial ratio?

A working capital ratio of 2 or higher can indicate healthy liquidity and the ability to pay short-term liabilities.