Typically, financial ratios are organized into four categories: Profitability ratios Liquidity ratios Solvency ratios Valuation ratios or multiples Generally, ratios are used in combination to gain a ...

Ratios of 1 or higher indicate short-term solvency. Because the current ratio compares short-term assets directly to short-term liabilities, a ratio of 1 or more indicates that a company would be ...

Insurance companies achieved their largest-ever results last year, but the solvency ratio, which is a measure of financial soundness, decreased. This is due to the application of guidelines that ...

These ratios generally fall within one of four types of measurements: profitability, liquidity, solvency, and valuation. Understanding and applying ratios from all of these categories can enable ...