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the best closer • 1m

𝑮𝒐𝒕 𝒕𝒉𝒆 𝒘𝒐𝒏𝒅𝒆𝒓𝒇𝒖𝒍 𝒍𝒆𝒔𝒔𝒐𝒏𝒔 𝒓𝒆𝒍𝒂𝒕𝒆𝒅 𝒕𝒐 𝒓𝒂𝒕𝒊𝒐𝒔 𝒇𝒓𝒐𝒎 𝒕𝒉𝒊𝒔 𝒃𝒐𝒐𝒌 : "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? 🤔 It's all in the ratios! 1. Liquidity Ratios: The "How Quickly Can You Pay for Dinner" Test * **Current Ratio** = Current Assets ÷ 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) ÷ 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 ÷ 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 ÷ Shareholder's Equity This shows how much profit a company generates with shareholders' money. Low ROE? Like telling investors "I took your ₹100 and turned it into ₹102." Not impressive! 3. Solvency Ratios: The "Will You Still Be Around Next Diwali" Test * **Debt-to-Equity** = Total Debt ÷ 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 ÷ Average Inventory Low turnover? You're basically running a museum, not a business! 📦 5. Valuation Ratios: The "Are You Worth All That Attention" Test * **P/E Ratio** = Share Price ÷ Earnings Per Share High P/E means either great expectations or you're the financial equivalent of that overpriced café in South Delhi! ☕ What's your favorite financial ratio? Drop it in the comments! 👇 #FinancialLiteracy #InvestingTips #FinanceSimplified #IndianMarkets #StockMarketIndia

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