Thirty Main Financial Ratios

When it comes to investing, analysing financial statement information (also known as quantitative analysis), is one of, if not the most important element in the fundamental analysis process. At the same time, the massive amount of numbers in a company's financial statements can be confusing to many investors. However, through financial ratio analysis, you will be able to work with these numbers in an organized fashion which I will guide you through.
The objective of this post is to provide you with a guide to sources of financial statement data, to highlight and define the most relevant ratios, to show you how to compute them and to explain their meaning as investment evaluators.
Among the dozens of financial ratios available, 30 measurements that are the most relevant to the investing process are chosen & organized into six main categories as per the following list:

1) Liquidity Measurement Ratios:

1. Current Ratio
2. Quick Ratio
3. Cash Ratio
4. Cash Conversion Cycle

2) Profitability Indicator Ratios:

1. Profit Margin Analysis
2. Effective Tax Rate
3. Return On Assets
4. Return On Equity
5. Return On Capital Employed

3) Debt Ratios:

1. Debt Ratio
2. Debt-Equity Ratio
3. Capitalization Ratio
4. Interest Coverage Ratio
5. Cash Flow To Debt Ratio

4) Operating Performance Ratios:

1. Fixed-Asset Turnover
2. Sales/Revenue Per Employee
3. Operating Cycle

5) Cash Flow Indicator Ratios:

1. Operating Cash Flow/Sales Ratio
2. Free Cash Flow/Operating Cash Ratio
3. Cash Flow Coverage Ratio
4. Dividend Payout Ratio

6) Investment Valuation Ratios:

1. Per Share Data
2. Price/Book Value Ratio
3. Cash Flow Coverage Ratio
4. Price/Earnings Ratio
5. Price/Earnings To Growth Ratio
6. Price/Sales Ratio
7. Dividend Yield
8. Enterprise Value Multiple

Each of which is decoded & explained in a simple way in the subsequent posts.