Explore BrainMass

Financial Ratios Most Useful

You are considering investing in a company. Which financial ratios would you find most useful? Why? (150 words)

Solution Preview

The financial ratios that would be most useful from an investor's point of view are Return on Investment (ROI) ratio and Return on equity (ROE) ratio. This is because these two ratios are not only part of the profitability ratios, they also indicate how successful a company is, regarding future financial decisions that reflect the net ...

Solution Summary

Which financial ratios would be found most useful is determined.