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.