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Key Financial Business Ratios
- To measure a company’s solvency, efficiency and profitability

1. Solvency Ratios
    - To measure the financial soundness of a business and
       how well the company can satisfy its short- and
       long-term obligations

2. Efficiency Ratios
   - To measure the quality of the firm’s receivables and
      how efficiently it uses and controls its assets, how effectively
      the firm is paying suppliers, and whether the firm is over-trading
      or under-trading on its equity

3. Profitability Ratios
   - To measure how well a company performs and analyze
      how profit was earned relative to sales, total assets and net worth


Reference(s):
D&B - Fourteen Key Business Ratios