Investopedia / NoNo Flores An accounting ratio is a metric that compares one line item from a company's financial statements to another. Accounting ratios, an important subset of financial ratios ...

David has helped thousands of clients improve their accounting and financial systems ... investors need to consider the key financial ratios that are most helpful in the analysis and equity ...

When determining a company's solvency 一 the ability to pay its short-term obligations using its current assets 一 you can use several accounting ratios. The current ratio is one of them.