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September 08th 2010.

Financial Ratios

Leverage and Equity Position Ratios

Measure the relationships between shareholders' equity and debt to assess the financial strengths and weaknesses of an organization.

A ratio is a relationship of one amount to another. Evaluate the financial strength or weakness of your Company and its operating trends utilizing ratios. Ratios on their own may not mean much; use them to compare one periods of activity, or to compare your organization's ratios to industry standards or its major competitor.