modern ratios

Modern ratios are tools used to compare different aspects of a company's performance or financial health, helping investors and managers make informed decisions. They include metrics like profitability (e.g., profit margin), efficiency (e.g., asset turnover), liquidity (e.g., current ratio), and leverage (e.g., debt-to-equity). These ratios provide quick insights into how well a business is operating, managing its resources, and meeting obligations. They are essential for analyzing trends over time and comparing companies within the same industry, enabling better evaluation of strengths, weaknesses, and financial stability.