One interesting liquidity ratio is the defensive interval which reflects theoretically how long the company can survive or defend itself in terms of its available cash plus cash equivalent ( most liquid cash) versus its daily cash operating requirement.

Ratio

Purpose
Formula

Defensive ratio

Used to indicate the number of days a company could theoretically remain […]

Earlier, the market/book ratio has been mentioned now we look at another useful market based ratio which is known as the Market value added ( MVA).
MVA is the difference between the market value of the company and the total capital invested in the company.
The formula of MVA is =
market capitalization ( number of equity shares […]

One of the essential ratio to investors and analysts is the market to book ratio.
This ratio expresses the relationship between a company’s value in the stock market and the net asset value as per the company’s balance sheet.
The formula is = market price per share/book value per share.
The purpose of this ratio is to indicate […]

The following are the articles written in relation to Ratio Analysis of a Company:

 Assessing the Liquidity Of A Company

Assessing the Profitability Of A Company
 Assessing The Activity Of Assets Utilised
 Assessing The Leverage Or Gearing Of A Company
 Assessing The Market Value Of A Company
 Using Altman-Z-System To Forecast Company’s bankruptcy
 Innovative/ A better  Way of Looking At Gross-Margin
 Price […]

Using common size methodology to analyze the financial statements like the Income Statement and Balance Sheet are extremely useful as it removes bias particularly when the companies are of differing sizes. Common financial statements enable us to do easy analysis between companies or between time periods of a company.
It allows us to analyze the […]