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Profitability Ratios
Profitability ratios measure a company’sability to generate earnings relative torevenue, assets, and equity.
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Liquidity Ratios
Liquidity ratios indicate whether a companycan meet its short-term obligations usingits current assets.
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Leverage ratios indicate the extent towhich a company relies on debt versusequity to finance its operations.
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Efficiency ratios measure how efficiently acompany uses assets to generate revenueand manage liabilities.
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Financial Modeling &Valuation Analyst(FMVA®) Certification
Profitability, liquidity,leverage, and efficiency ratios are core to financialmodeling. Learn how to usethem step-by-step insideCFI’s FMVA® program.
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