Key financial ratios

Numbers from financial statements that quickly gauge a company's health.

Fundamental Analysis for TradersLesson 3 of 9

All lessons

By the end of this lesson you'll be able to:

01Explain what financial ratios are for
02Name key ratio types
03Interpret a simple ratio

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Are Financial Ratios? A Trader Guide

Key terms

Financial Ratios P/E Ratio Return on Equity Current Ratio

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What are financial ratios used to do?
Question 02
What does the P/E ratio measure?
Question 03
What ability does a liquidity ratio like the current ratio measure?
Question 04
What does a high debt-to-equity ratio signal?
Question 05
What does return on equity (ROE) measure?
Question 06
When are ratios most useful?
Question 07
A company with a current ratio below 1 may:
Question 08
What can a very high P/E mean about the market?
Question 09
What does margins (like net profit margin) show?
Question 10
What is a single ratio in isolation?

Answered 0 of 10 · pass 70% (7/10) to complete

Fundamental Analysis for Traders3 of 9

Key financial ratios

Numbers from financial statements that quickly gauge a company's health.

Fundamental Analysis for TradersLesson 3 of 9

All lessons

By the end of this lesson you'll be able to:

01Explain what financial ratios are for
02Name key ratio types
03Interpret a simple ratio

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Are Financial Ratios? A Trader Guide

Key terms

Financial Ratios P/E Ratio Return on Equity Current Ratio

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What are financial ratios used to do?
Question 02
What does the P/E ratio measure?
Question 03
What ability does a liquidity ratio like the current ratio measure?
Question 04
What does a high debt-to-equity ratio signal?
Question 05
What does return on equity (ROE) measure?
Question 06
When are ratios most useful?
Question 07
A company with a current ratio below 1 may:
Question 08
What can a very high P/E mean about the market?
Question 09
What does margins (like net profit margin) show?
Question 10
What is a single ratio in isolation?

Answered 0 of 10 · pass 70% (7/10) to complete

Fundamental Analysis for Traders3 of 9

Key financial ratios

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What are financial ratios used to do?

What does the P/E ratio measure?

What ability does a liquidity ratio like the current ratio measure?

What does a high debt-to-equity ratio signal?

What does return on equity (ROE) measure?

When are ratios most useful?

A company with a current ratio below 1 may:

What can a very high P/E mean about the market?

What does margins (like net profit margin) show?

What is a single ratio in isolation?

Key financial ratios

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What are financial ratios used to do?

What does the P/E ratio measure?

What ability does a liquidity ratio like the current ratio measure?

What does a high debt-to-equity ratio signal?

What does return on equity (ROE) measure?

When are ratios most useful?

A company with a current ratio below 1 may:

What can a very high P/E mean about the market?

What does margins (like net profit margin) show?

What is a single ratio in isolation?