Here are a few of the top five financial ratios that I came across I thought they were good so I wan

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Here are a few of the top five financial ratios that I came across I thought they were good so I wanted to share. Top 5 Financial Ratios The most cost commonly and top five ratios used in the financial field include:1. Debt-to-Equity RatioThe debt-to-equity ratio, is a quantification of a firm’s financial leverage estimated by dividing the total liabilities by stockholders’ equity. This ratio indicates the proportion of equity and debt used by the company to finance its assets.The formula used to compute this ratio isTotal Liabilities / Shareholders Equity2. Current RatioThe current ratio is a liquidity ratio which estimates the ability of a company to pay back short-term obligations. This ratio is also known as cash asset ratio, cash ratio, and liquidity ratio. A higher current ratio indicates the higher capability of a company to pay back its debts. The formula used for computing current ratio is:Current Assets / Current Liabilities3. Quick Ratio

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