What are financial ratios?

Financial ratios are mathematical calculations used to evaluate a company's financial performance and health. They are used by investors, analysts, and creditors to assess a company's profitability, liquidity, solvency, and efficiency. Some common financial ratios include the debt-to-equity ratio, return on equity, current ratio, and gross profit margin. These ratios provide valuable insights into a company's financial position and help stakeholders make informed decisions.

Financial ratios are mathematical equations that provide insights into a company's financial performance and health. They are used by investors, analysts, and creditors to evaluate a company's strengths and weaknesses, compare its performance to other companies in the same industry, and assess its overall risk. Financial ratios are typically categorized into liquidity ratios, solvency ratios, profitability ratios, and market value ratios.

Describe current ratio?