8 Important Financial Ratios To Know When Analyzing A Stock
Key takeaways
- Individual stocks can be a good way to diversify your portfolio, but you’ll need to know how to analyze the underlying businesses before investing.
- There are several types of financial ratios to consider when looking at a stock including: earnings per share, price-to-earnings, return on equity, debt-to-capital, interest coverage, enterprise value to EBIT, operating margin and quick ratio.
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