"Financial ratios illustrate relationships between different aspects of a business's operations. They involve the comparison of elements from a balance sheet or income statement, and are crafted with particular points of focus in mind. Financial ratios can provide business owners and managers with a valuable tool to measure their progress against predetermined internal goals, a certain competitor, or the overall industry. In addition, tracking various ratios over time is a powerful way to identify trends as they develop. Ratios are also used by bankers, investors, and business analysts to assess various attributes of a company's financial strength or operating results."
- Encyclopedia of Small Business
Ed. Laurie Collier Hillstrom and Kevin Hillstrom. Vol. 1. 2nd ed. Detroit: Gale, 2002. p502-505.
Access Company Dossier
1. From the Nexis/Uni home page, slide to the top of the page.
2. Click on the down arrow by Menu. Select: Company Dossier
4. From the Jump to choices, select the Ratio Analysis link.
In order to see up to three years of ratios:
After selecting Ratio Analysis, scroll down a few screens.
Tip: Can't find a ratio?
Hundreds of ratios exist to describe all nuances of a company's activity. Databases usually only feature a couple dozen of the most popular ratios. You may need to manually calculate a ratio if you don't see it in the ratio list provided by a database.
Try the following books: