Gain an understanding of the top ten financial ratios that are used in the process of evaluating the performance of companies.

Profit Margin: Measure of company profitability by comparing net income to revenue. A higher margin indicates better profitability.

Return on Assets (ROA): Efficiency measure indicating how well assets generate profits. Higher ROA indicates effective asset utilization.

Debt-to-Equity Ratio: Assessment of a company's leverage and financial stability. Lower ratio implies lower financial risk.

Current Ratio: Evaluation of liquidity by comparing current assets to liabilities. Higher ratioindicates better short-term solvency.

Price-to-Earnings (P/E) Ratio: Indicator of investor expectations and valuation. Higher ratio suggests higher growth prospects.

Return on Equity (ROE): Profitability measure based on shareholder equity. Higher ROE indicates better returns for shareholders.

Gross Margin: Assessment of profitability after deducting production costs from sales. Higher margin signifies better profitability.

Earnings Per Share (EPS): Measure of company's profitability per outstanding share. Higher EPS implies higher shareholder earnings.

Quick Ratio: Evaluation of immediate liquidity, excluding inventory from current assets. Higher ratio indicates better ability to meet short-term obligations.

Dividend Yield: Measure of return on investment from dividend distributions. Higher yield signifies higher returns for shareholders.