Accounting ratios can provide an accurate assessment of the profitability of a company over the last quarter or fiscal year. They include the debt-to-equity ratio, the quick ratio, the dividend payout ratio, the gross margin, and the operating margin.
These are just a few examples of the many accounting tools that corporations and analysts use to evaluate a company, however. Many other tools highlight different aspects of a company so you’ll want to explore and potentially use them as well.
