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Entrepreneurship @ Webster University Library

What are financial ratios?

Ratios are a mathematical comparison of two quantities, for example, the price-earnings ratio used to analyze a stock. Ratios of one firm are often compared across time, with those of a similar company, or with all firms in the industry, i.e. an industry ratio or industry average.  

Some major forms of financial ratios are:

  • profitability (e.g. earnings per share)
  • liquidity / risk (e.g. current ratio, quick ratio)
  • efficiency (e.g. price-to-earnings ratio)

For additional information see Financial ratios and statement analysis. (2005). In Blackwell Encyclopedia of Management (2nd ed., pp. 194-198). Malden, MA: Blackwell. Retrieved July 5, 2011, from Gale Virtual Reference Library.

Database for finding company ratios

Databases for finding industry ratios

Industry ratios/averages databases

These databases provide aggregated financial ratios for all companies in an industry.  They do not provide ratios for individual companies -- see the tab on this guide for Company Directories and Financials.

Using library databases to find industry & company ratios