A current ratio of 1.5 to 1 is generally regarded as ideal for industrial companies, as of 2014. However, the merit of a current ratio varies by industry. Typically, a company wants a current ratio that is in line with t... More »

The five categories of financial ratios are liquidity (solvency), leverage (debt), asset efficiency (turnover), profitability and market ratios. These ratios measure the return earned on a company?????????s capital and t... More »

Financial ratios by industry include debt ratios, liquidity ratios, market value ratios and profitability ratios, notes the Houston Chronicle. The ratios compare a firm's growth and its position in the industry. Ratios c... More »

Calculate debt ratio by determining total debts and total assets and then dividing the former by the latter. A debt ratio is a comparison of the total debt of an individual or company to its total assets, expressed as a ... More »

The operating asset turnover formula is the ratio of a business formation's sales to its assets. It is an efficiency measure to express how well a company is using its assets to generate revenue. More »

The gross profit ratio is calculated by dividing a firm’s gross profit figure by its net sales (revenue minus the cost of goods sold). The equation is a standard financial metric used to assess a company’s financial heal... More »

Usually, an ROA ratio, or return on assets ratio, is considered "good" if it is above five percent. However, ROA ratios should be looked at historically for the company being evaluated as well as against companies that a... More »