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Ratios and Definitions
The primary goal of the ratio and definition section is to
help investors understand the technical nuances of investing, which can be
very beneficial when analyzing investments.
The categories discussed are:
- Market Price Analysis
- Profitability Analysis
- Liquidity Analysis
- Cash Flow Analysis
- Capital – Leverage Analysis
- Activity Analysis
Note: For all calculations in this section, it is
important that both the top and bottom parts of the equation use the same
number of months (e.g., annual data divided by annual data; quarterly data
divided by quarterly data)
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