4 June 2024

“Ratios are quantitative measures that serve as indicators of the health or performance of a company or a specific product or department. For instance, the Return on Investment (ROI) measures the profitability of a given investment compared to its cost. Another key ratio is the Gross Margin Ratio, which indicates how much money the company makes per sale after the cost of sales. Understanding these ratios helps investors determine the viability of their investments and assess the overall performance of a company.”