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	<title>Financial Modeling Guide &#187; Financial Ratios</title>
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		<title>Other Financial Ratios Used in Financial Modeling</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/other-financial-ratios/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/other-financial-ratios/#comments</comments>
		<pubDate>Wed, 20 Jan 2010 06:00:24 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[excel]]></category>
		<category><![CDATA[financial analysis]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>

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		<description><![CDATA[We have covered the most commonly used financial ratios that a financial analyst will come across when building a financial model, and a good financial analyst should be aware that the financial ratios we reviewed are a sub-set of many more used in financial modeling and financial analysis at large.
Look at the illustration below for [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratio-limitations/' rel='bookmark' title='Permanent Link: Limitations of Financial Ratios in Financial Modeling'>Limitations of Financial Ratios in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios-primer/' rel='bookmark' title='Permanent Link: Financial Ratios Primer'>Financial Ratios Primer</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Financial Ratios'>Analytical Tools in Financial Modeling &#8211; Financial Ratios</a></li>
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		<item>
		<title>Analytical Tools in Financial Modeling &#8211; Financial Ratios</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/financial-ratios/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/financial-ratios/#comments</comments>
		<pubDate>Wed, 16 Dec 2009 07:00:02 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Analytical Tools]]></category>
		<category><![CDATA[Financial Ratios]]></category>
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		<category><![CDATA[financial analyst]]></category>
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		<description><![CDATA[Financial ratios are tools for interpreting financial statements to provide a basis for valuing securities and appraising financial and management performance.
A good financial analyst will build in financial ratio calculations extensively in a financial modeling exercise to enable robust analysis. Financial ratios allow a financial analyst to:

Standardize information from financial statements across multiple financial years to [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/analytical-tools/vertical-analysis/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Vertical Analysis'>Analytical Tools in Financial Modeling &#8211; Vertical Analysis</a></li>
<li><a href='http://www.financialmodelingguide.com/analytical-tools/using-analytical-tools/' rel='bookmark' title='Permanent Link: Using Analytical Tools in Financial Modeling'>Using Analytical Tools in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/analytical-tools/horizontal-analysis/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Horizontal Analysis'>Analytical Tools in Financial Modeling &#8211; Horizontal Analysis</a></li>
</ol>]]></description>
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		<slash:comments>71</slash:comments>
		</item>
		<item>
		<title>Financial Ratios Primer</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/financial-ratios-primer/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/financial-ratios-primer/#comments</comments>
		<pubDate>Fri, 04 Dec 2009 06:00:14 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[Video]]></category>
		<category><![CDATA[excel]]></category>
		<category><![CDATA[financial analysis]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/video/financial-ratios-primer/</guid>
		<description><![CDATA[In finance, a financial ratio is a ratio of selected values on a enterprise&#8217;s financial statements.
There are many standard ratios used to evaluate the overall financial condition of a corporation or other organization, which any good financial modeler should be aware of when conducting a financial modeling exercise.
Financial ratios are used by managers within a [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratio-limitations/' rel='bookmark' title='Permanent Link: Limitations of Financial Ratios in Financial Modeling'>Limitations of Financial Ratios in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/other-financial-ratios/' rel='bookmark' title='Permanent Link: Other Financial Ratios Used in Financial Modeling'>Other Financial Ratios Used in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Financial Ratios'>Analytical Tools in Financial Modeling &#8211; Financial Ratios</a></li>
</ol>]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Liquidity Ratios in Financial Modeling</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/liquidity-ratios/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/liquidity-ratios/#comments</comments>
		<pubDate>Wed, 25 Nov 2009 07:00:15 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/financial-ratios/liquidity-ratios/</guid>
		<description><![CDATA[Liquidity ratios indicate the ability of the company to meet its short-term obligations, and help a financial analyst assess this aspect of a company&#8217;s performance from the results of a financial model or financial statements.
There are 2 common liquidity ratios that a financial modeler is likely to come across.
Current ratio
Current assets are those assets that [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/financial-ratios/performance-ratios/' rel='bookmark' title='Permanent Link: Performance Ratios in Financial Modeling'>Performance Ratios in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Financial Ratios'>Analytical Tools in Financial Modeling &#8211; Financial Ratios</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/solvency-ratios/' rel='bookmark' title='Permanent Link: Solvency Ratios in Financial Modeling'>Solvency Ratios in Financial Modeling</a></li>
</ol>]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Performance Ratios in Financial Modeling</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/performance-ratios/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/performance-ratios/#comments</comments>
		<pubDate>Wed, 18 Nov 2009 05:00:50 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/financial-ratios/performance-ratios/</guid>
		<description><![CDATA[There are 4 common types of financial ratios that a good financial analyst will use to assess the performance of a business or project in building or interpretating the results of a financial model.
These 4 performance ratios are by no means exhaustive, but provide a good rule of thumb indication on the most important ones [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/financial-ratios/working-capital-ratios/' rel='bookmark' title='Permanent Link: Working Capital Ratios in Financial Modeling'>Working Capital Ratios in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/liquidity-ratios/' rel='bookmark' title='Permanent Link: Liquidity Ratios in Financial Modeling'>Liquidity Ratios in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratio-limitations/' rel='bookmark' title='Permanent Link: Limitations of Financial Ratios in Financial Modeling'>Limitations of Financial Ratios in Financial Modeling</a></li>
</ol>]]></description>
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		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>Working Capital Ratios in Financial Modeling</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/working-capital-ratios/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/working-capital-ratios/#comments</comments>
		<pubDate>Wed, 11 Nov 2009 05:00:28 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/financial-ratios/working-capital-ratios/</guid>
		<description><![CDATA[Working capital ratios demonstrate the company’s efficiency at managing its resources, with particular reference to cash flow, and allows a good financial analyst to quickly and efficiently assess this aspect of the company&#8217;s performance in a financial modeling project. 
Some typical working capital ratios that a financial analyst will come across include:

Days inventory, this tells us [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/financial-ratios/performance-ratios/' rel='bookmark' title='Permanent Link: Performance Ratios in Financial Modeling'>Performance Ratios in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Financial Ratios'>Analytical Tools in Financial Modeling &#8211; Financial Ratios</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/liquidity-ratios/' rel='bookmark' title='Permanent Link: Liquidity Ratios in Financial Modeling'>Liquidity Ratios in Financial Modeling</a></li>
</ol>]]></description>
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		</item>
		<item>
		<title>Solvency Ratios in Financial Modeling</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/solvency-ratios/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/solvency-ratios/#comments</comments>
		<pubDate>Mon, 02 Nov 2009 05:00:39 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/financial-ratios/solvency-ratios/</guid>
		<description><![CDATA[Solvency ratios indicate the risk inherent in the company as a result of its debt. 
A good financial analyst will use solvency ratios to keep tabs of the forecasts made in a financial modeling exercise on debt accumulation to ensure that they are realistic and prudent.
A good financial analyst will also use solvency ratios to assess [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/financial-ratios/liquidity-ratios/' rel='bookmark' title='Permanent Link: Liquidity Ratios in Financial Modeling'>Liquidity Ratios in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Financial Ratios'>Analytical Tools in Financial Modeling &#8211; Financial Ratios</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/performance-ratios/' rel='bookmark' title='Permanent Link: Performance Ratios in Financial Modeling'>Performance Ratios in Financial Modeling</a></li>
</ol>]]></description>
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		<slash:comments>4</slash:comments>
		</item>
		<item>
		<title>Limitations of Financial Ratios in Financial Modeling</title>
		<link>http://www.financialmodelingguide.com/financial-ratios/financial-ratio-limitations/</link>
		<comments>http://www.financialmodelingguide.com/financial-ratios/financial-ratio-limitations/#comments</comments>
		<pubDate>Mon, 19 Oct 2009 05:55:58 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[Accounting]]></category>
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		<category><![CDATA[financial analyst]]></category>
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		<guid isPermaLink="false">http://www.financialmodelingguide.com/financial-ratios/financial-ratio-limitations/</guid>
		<description><![CDATA[While financial ratio analysis can provide us with important insight into a company&#8217;s performance, a good financial analyst will be aware that there are some important limitations that should be noted when using financial ratios as an analytical tool in financial modeling.
Limitations of Financial Ratio Analysis

Ratio analysis is a retrospective, not prospective examination.
Ratio analysis is [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/financial-ratios/other-financial-ratios/' rel='bookmark' title='Permanent Link: Other Financial Ratios Used in Financial Modeling'>Other Financial Ratios Used in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios/' rel='bookmark' title='Permanent Link: Analytical Tools in Financial Modeling &#8211; Financial Ratios'>Analytical Tools in Financial Modeling &#8211; Financial Ratios</a></li>
<li><a href='http://www.financialmodelingguide.com/financial-ratios/financial-ratios-primer/' rel='bookmark' title='Permanent Link: Financial Ratios Primer'>Financial Ratios Primer</a></li>
</ol>]]></description>
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