Key Ratio

A key ratio is any ratio used to measure an aspect of a company’s finances.

There are numerous ratios that are considered key ratios, but some of the most notable include:

  • Quick Ratio
  • Cash Ratio
  • Cash Conversion Ratio
  • Current Ratio
  • Working Capital Ratio
  • Profit Margin
  • Gross Margin
  • Return on Assets
  • Return on Equity

All of these formulas measure some aspect of a company’s financials, including profitability, liquidity, efficiency, operating income, and more.

Related terms "K"