Financial Ratios Cheat Sheet

financial ratios cheat sheet

1. P/E RatioIt is better if it is less than 25.
2. Price-to-book ValueIf it is less than or equals to 1.5, or lower as compared to peer companies in the same industry, then it is better
3. Debt-to-equity RatioPlease check if this is less than 1.
4. Operating Profit MarginIt depends on the sector.A higher ratio is better.
5. Price/Earnings Growth RatioIt is better if it is greater than 10%.
6. Return On EquityGreater than 20% is preferred in this case.
7. Interest Coverage RatioAt least 2, higher the better.
8. Current RatioGreater than 1 is preferable.
9. Asset Turnover RatioHigher the better
10. Dividend YieldAround 4-6% is preferable.

Financial Ratios Cheat Sheet Conclusion

We hope you find Financial Ratios Cheat Sheet useful. Click on the button below to find out some of the best leading economic indicators and click on each button to go directly to the source.

To show Financial Ratios Cheat Sheet readers how companies PE ratio has reverted back around to 15.
SP 500 Price Earnings Ratio (CAPE) by Farcaster.
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