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spectar
the best closerย โขย 6m
๐ฎ๐๐ ๐๐๐ ๐๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐๐๐ : "Boring Numbers or Money Magnets? The Financial Ratios That Matter" Ever wondered why some companies get all the investor love while others get swiped left? ๐ค It's all in the ratios! 1. Liquidity Ratios: The "How Quickly Can You Pay for Dinner" Test * **Current Ratio** = Current Assets รท Current Liabilities When it's above 1, you can pay your bills. Below 1? You're that friend who always "forgot their wallet." * **Quick Ratio** = (Cash + Marketable Securities + Accounts Receivable) รท Current Liabilities Same concept but stricter - like asking if you can pay right NOW, not after selling your old laptop on OLX! 2. Profitability Ratios: The "Are You Worth Dating" Test * **Net Profit Margin** = Net Profit รท Revenue The higher this is, the more efficient you are at turning sales into actual profit. Like converting leads into actual sales - not just collecting phone numbers! * **Return on Equity (ROE)** = Net Income รท Shareholder's Equity This shows how much profit a company generates with shareholders' money. Low ROE? Like telling investors "I took your โน100 and turned it into โน102." Not impressive! 3. Solvency Ratios: The "Will You Still Be Around Next Diwali" Test * **Debt-to-Equity** = Total Debt รท Total Equity Too high and you're one bad quarter away from calling up Sharma Uncle for a loan! 4. Efficiency Ratios: The "How Hard Is Your Money Working" Test * **Inventory Turnover** = Cost of Goods Sold รท Average Inventory Low turnover? You're basically running a museum, not a business! ๐ฆ 5. Valuation Ratios: The "Are You Worth All That Attention" Test * **P/E Ratio** = Share Price รท Earnings Per Share High P/E means either great expectations or you're the financial equivalent of that overpriced cafรฉ in South Delhi! โ What's your favorite financial ratio? Drop it in the comments! ๐ #FinancialLiteracy #InvestingTips #FinanceSimplified #IndianMarkets #StockMarketIndia
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