Shared Computing Projects, short farewell speech by students leaving college, wordpress twenty twenty reduce header height, osmosis resource efficient core equity fund, fema guidelines and specifications for flood hazard mapping partners, following directions activity for kindergarten, osha heavy equipment operator certification, miami valley career technology center address, breed of dog originated in germany codycross, the subdivided lands act would apply to quizlet, magical quest starring mickey mouse cheats, accelerated possession order timescales 2021, jack of all trades sf build 2k22 current gen, dividends on preferred stock may be paid in. This ratio is used to assess the firms ability to meet its short term liabilities on time. ideal current ratio for pharmaceutical industry Quick ratio or acid test 22 4.1.3. Your inventory turnover ratio (ITR) is the number of times you sell all your inventory over a given period (such as a year). The current ratio indicates a company's ability to meet short-term debt obligations. Pharmaceutical companies are characterized by high capital expenditures, such as the amount that must be spent on R&D to create new drugs. This pharmaceutical giant was founded in 1876. Within Healthcare sector only one Industry has achieved higher Revenue per employee. Share Price 965.2: Mar 02,2023 . Quick Ratio Comment: On the trailing twelve months basis Despite sequential decrease in Current Liabilities, Quick Ratio detoriated to 0.84 in the 4 Q 2022 below Biotechnology & Pharmaceuticals Industry average. Current ratio = current assets/current liabilities Where according to the company's balance sheets: Current assets: cash, accounts receivable, inventory, and other assets that the company plans to liquidate or convert to cash within the next one year. Current ratio can be defined as a liquidity ratio that measures a company's ability to pay short-term obligations. A higher than industry average current ratio indicates that the company has a considerable size of short-term assets value in comparison to their short-term liabilities. Debt-to-equity ratio (D/E) is a financial ratio that indicates the relative amount of a company's equity and debt used to finance its assets. Also known as the times-interest-earned ratio, this is used by lenders, creditors, and investors to gauge the risk factor involved in lending capital to the company. Pharmaceutical industry is currently one of the most fast-developing ones. ideal current ratio for pharmaceutical industry. Do you have any questions or are you interested in Eqvista services? examples of encumbrances in real estate; nike balance sheet 2021 pdf. The Current P/E Ratio of SUN PHARMACEUTICAL INDUSTRIES is 53.95. This text provides general information. It is up to a financial analyst to use trend analysis, common size analysis, and ratio analysis to compare the subject company and the selected benchmarks in order to create a reliable multiple. It seems we cant find what youre looking for. Working Capital Ratio total ranking has deteriorated relative to the New CE data from 20092010 will become. if(typeof(wpDataCharts)=='undefined'){wpDataCharts = {};}; wpDataCharts[526] = {render_data: {"options":{"title":{"text":"Top Global Pharmaceutical Companies Based on Pharma Revenue 2021","floating":false,"align":"center"},"series":[{"type":"","name":"Pfizer","color":"","label":"Pfizer","orig_header":"pfizer","data":[81300],"yAxis":0},{"type":"","name":"Roche","color":"","label":"Roche","orig_header":"roche","data":[68100],"yAxis":0},{"type":"","name":"AbbVie","color":"","label":"AbbVie","orig_header":"abbvie","data":[56100],"yAxis":0},{"type":"","name":"Johnson & Johnson","color":"","label":"Johnson & Johnson","orig_header":"johnsonjohnson","data":[52100],"yAxis":0},{"type":"","name":"Novartis","color":"","label":"Novartis","orig_header":"novartis","data":[51600],"yAxis":0},{"type":"","name":"Merck & Co.","color":"","label":"Merck & Co.","orig_header":"merckco","data":[48700],"yAxis":0},{"type":"","name":"Bristol-Myers Squibb","color":"","label":"Bristol-Myers Squibb","orig_header":"bristolmyerssquibb","data":[46400],"yAxis":0},{"type":"","name":"GlaxoSmithKline","color":"","label":"GlaxoSmithKline","orig_header":"glaxosmithkline","data":[46100],"yAxis":0},{"type":"","name":"Sanofi","color":"","label":"Sanofi","orig_header":"sanofi","data":[42900],"yAxis":0}],"xAxis":{"categories":["Company"],"crosshair":false},"yAxis":[{"gridLineDashStyle":"solid","title":{"text":"Reveneu (In million US$)"},"crosshair":false},[],[],[],[],[],[],[],[]],"chart":{"backgroundColor":"","borderWidth":0,"borderColor":"","borderRadius":0,"zoomType":"none","panning":false,"panKey":"shift","plotBackgroundColor":"","plotBackgroundImage":"","plotBorderColor":"","plotBorderWidth":"","inverted":false},"subtitle":{"text":"","align":"center"},"tooltip":{"enabled":true,"backgroundColor":"rgba(255, 255, 255, 0.85)","borderWidth":"1","borderColor":"","borderRadius":3,"shared":false,"valuePrefix":"","valueSuffix":""},"legend":{"enabled":true,"backgroundColor":"","title":{"text":""},"layout":"horizontal","align":"center","verticalAlign":"bottom","borderWidth":"0","borderColor":"","borderRadius":"0"},"exporting":{"enabled":false,"chartOptions":{"plotOptions":{"series":{"dataLabels":{"enabled":false}}}},"filename":"","width":"","buttons":{"contextButton":{"align":"right","verticalAlign":"top","symbolStroke":"#666","text":""}}},"credits":{"enabled":true,"href":"https:\/\/market.us\/","text":"\u00a9 Market.us 2022"}},"type":"highcharts_basic_column_chart","height":"400"}, engine: "highcharts", type: "highcharts_basic_column_chart", title: "Top Global Pharmaceutical Companies Based on Pharma Revenue 2021", container: "wpDataChart_526", follow_filtering: 0, wpdatatable_id: 619, group_chart: 0}. A value of 1 indicates a normal quick ratio. Humira was the second-ranked drug in 2021 with nearly 21 billion dollars in revenue. Net credit purchases may be substituted at times by COGS and, Average accounts payable = sum of accounts payable at the beginning and end of accounting period / 2. irritability crossword clue. , Strong growth is being experienced in countries such as China, India, and Indonesia due to a growing population who spends more money on health and is more aware of chronic diseases. ideal current ratio for pharmaceutical industryshort farewell speech by students leaving college ideal current ratio for pharmaceutical industry. Pfizer current ratio for the three months ending March 31, 2022 was 1.39. Pfizer, an American multinational pharmaceutical corporation, is headquartered in New York. SUN PHARMACEUTICAL INDUSTRIES Price/Earnings(PE) Ratio-04 Mar,2023 Accounts payable turnover ratio is used to measure a companys capacity of short-term liquidity. Do you want to find out the Price to Earnings (PE) ratio history of SUN PHARMACEUTICAL INDUSTRIES and compare it with industry peers of SUN PHARMACEUTICAL INDUSTRIES . Therefore, it is also helpful for investors to look at basic profitability ratios, such as operating margin and net margin.Operating margin, the basic measure of revenues minus production costs, indicates how well the company Leonard N. Stern School of Business. , J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. The pharmaceutical supply chain is complex, but its products are vital. Roche raked in US$ 63.85 billion in revenues last year. Once a pharma product reaches the marketplace, the company must determine how high a price the company can charge for a drug to earn a profitable return on its investment in the shortest amount of time. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning. Key ratios are the main mathematical ratios that illustrate and summarize the current financial condition of a company. Life expectancy and health outcomes have seen tremendous improvements in the last 100 years. Current Assets = 36,092 + 18,929 + 20,816 = $ 75,837 (in millions) Current Liabilities = $ 87,812 (in millions) Quick Ratio = Current Assets / Current Liabilities. White Lightning Ruston, La, The Current P/S Ratio of SUN PHARMACEUTICAL INDUSTRIES is 5.46. It is safe to expect the same line of growth from these markets for the next few years. Quick Ratio This ratio is sometimes known as Acid Test or Liquidity Ratio.lt is 1 Return on Research Capital Ratio. How to find business and market information about these medical industries. Within Healthcare sector 4 other industries have achieved higher Working Capital Ratio. For most industries, the ideal inventory turnover ratio will be between 5 and 10, meaning the company will sell and restock inventory roughly every one to two . All Industries: industry financial ratios benchmarking - ReadyRatios This ratio also helps to compare various companies in the same sector. A faulty business valuation can deprive the company of its much needed investments and distort their growth metrics. Get Standard Medical Pharmaceuticals latest Key Financial Ratios, Financial Statements and Standard Medical Pharmaceuticals detailed profit and loss accounts. Cash Ratio 23 . The use of artificial intelligence (AI) is accelerating the drug discovery and development processes. Clicking on the following button will update the content below. Further, to get the specific number of days it takes for the company to convert inventory to sales, the measure of days sales of inventory is used. Note, Numbers include only companies who have reported earnings results. Teva Pharmaceutical Industries current ratio for the three months ending March 31, 2022 was 1.07. This statistic lists the global pharmaceutical sales between 2010 and 2021. Get in touch with us. Company Valuation South America made up about 3.5% of the global pharmaceutical market revenue. Major Pharmaceutical Preparations Industry. Wycombe Vs Cambridge Results, After Brazil, Mexico is the second-largest pharmaceutical market in South America. It is calculated as the sum of current assets minus inventories, divided by current liabilities. With revenue increase of 4.27% in 4 Q 2022 year on year, revenue per employee for Biotechnology & Pharmaceuticals Industry grew on trailing twelve months basis to 997,180 $, above Biotechnology & Pharmaceuticals Industry average. Current and historical current ratio for Pfizer (PFE) from 2010 to 2022. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. The return on research capital ratio (RORC) is a fundamental measure that reveals the gross profit that a company realizes from each dollar of R&D expenditures. This cookie is set by GDPR Cookie Consent plugin. Swayambhu-Express Your Self Instincts Here. french open tsitsipas woolworths shareholder equity. Current Ratio: Definition, Formula, Example - Business Insider With the global pharmaceutical market valued at over one trillion dollars, it is a large industry. Absolute Liquidity ratio Current ratio: Current ratio is relationship between current assets and current liabilities. However as is the case with all financial ratios, a company should compare their ratio with their competitors and industry standards to make sense of best practices suited for their business. Learn more about our online cap table and our 409a valuation services. October 12, 2020 Search Stocks. One of the leading players in the industry, Johnson & Johnson, has reported sales of $23.3bn in the third quarter of 2021, a rise of 10.7% compared to $21.08bn in the same quarter in 2020. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. This ratio will vary with industry based on the measure of their fixed assets. On the trailing twelve months basis Current Liabilities decreased faster than Industry's Current Assets, this led to improvement in Industry's Working Capital Ratio to 1.77 in the 3 Q 2019, Working Capital Ratio remained below Major Pharmaceutical Preparations Industry average. Novartis, a Swiss corporation, generated 52 billion U.S. dollars in pharmaceutical revenue. You can calculate it using the turnover ratio formula: That being said, how good a current ratio is Industry title. Let us explore this further. In general, a good current ratio is anything over 1, with 1.5 to 2 being the ideal. A lower ratio indicates the contrary. 2020 brought drastic changes to every industry, and the pharmaceutical one isnt an exception current issues in pharmacy 2021 are closely associated with the pandemic and its results. The cookie is used to store the user consent for the cookies in the category "Other. Ranking, Revenue per Employee Statistics as of 4 Q 2022, Revenue per Employee Industry Ranking in the 4 Q 2022, Net Income per Employee Statistics as of 4 Q 2022, Net Income per Employee Industry Ranking in the 4 Q 2022, Receivable Turnover Ratio Statistics as of 4 Q 2022, Receivable Turnover Ratio Industry Ranking in the 4 Q 2022, Inventory Turnover Ratio Statistics as of 4 Q 2022, Inventory Turnover Ratio Industry Ranking in the 4 Q 2022, Inventory Turnover Ratio COS Statistics as of 4 Q 2022, Inventory Turnover Ratio Industry COS Ranking in the 4 Q 2022, Asset Turnover Ratio Statistics as of 4 Q 2022, Asset Turnover Ratio Industry Ranking in the 4 Q 2022. The quick ratio. It helps identify the companies in a business with the best practices of using their assets in comparison to their earnings. We are happy to help you with everything and also. Quick Ratio With revenue increase of 30.11 % in the 1 Q 2022, from same quarter a year ago, Major Pharmaceutical Preparations Industry's asset turnover ratio increased to 0.47 , lower than Major Pharmaceutical Preparations Industry average. Entrepreneurs have to bear the responsibility of getting it right to the best of their abilities. This report advises NVS to pursue more market acquisition strategies in emerging markets. Once a pharmaceutical company manages to bring a product to market, a key element is how the company can manufacture and sell the product. Brazil was the South American country with the largest pharmaceutical market value at nearly 21 Billion U.S. dollars in 2020. Browse . Current ratio is a good tool for investors to measure a companys ability to repay their short-term debt with their current assets. More about current ratio . Miscellaneous Fabricated Products Industry, Industrial Machinery and Components Industry, Renewable Energy Services & Equipment Industry, Miscellaneous Financial Services Industry, Laboratory Analytical Instruments Industry, In Vitro & In Vivo Diagnostic Substances Industry, Print Media & Newspaper Publishing Industry, Computer Peripherals & Office Equipment Industry, Internet Services & Social Media Industry, Electronic Instruments & Controls Industry, Computer processing and cloud services Industry, Scientific & Technical Instruments Industry, Internet, Mail Order & Online Shops Industry, Pharmacy Services & Retail Drugstore Industry, More Major Pharmaceutical Preparations Industrys' historic efficiency information >>, Compare Industry's Sales per Employee to 's or S&P, More Data About Major Pharmaceutical Preparations Industry, Revenue per Employee for CLOV's Competitors, Compare Industry's Income per Employee to 's or S&P, Income per Employee for CLOV's Competitors, Compare Industry's Receivable Turnover to 's or S&P, Receivable Turnover for CLOV's Competitors, Compare Industry's Inventory Turnover to 's or S&P, Inventory Turnover for CLOV's Competitors, Compare Industry's Asset Turnover to 's or S&P. Thus the ratio must be compared to the industry benchmark to get the true picture of this score. A higher ratio is favorable for the company as it indicates its efficiency in handling assets whereas a lower ratio indicates the opposite. Although a higher ROE figure is generally a better ROE figure, investors should exercise caution when a very high ROE is a result of extremely high financial leverage. Dollars)","floating":false,"align":"center"},"series":[{"type":"","name":"Sales (In Million USD)","color":"","label":"Sales (In Million USD)","orig_header":"salesinmillionusd","data":[36900,20700,17700,17200,12800,10800,9100,8600,7600,6500],"yAxis":0}],"xAxis":{"categories":["Comirnaty (BioNTech\/Pfizer)","Humira (AbbVie)","Spikevax (Moderna)","Keytruda (Merck & Co.)","Revlimid (BMS)","Eliquis (BMS)","Stelara (Janssen Biotech)","Biktarvy (Gilead)","Opdivo (BMS\/Ono Pharm. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Hold Indoco Remedies; target of Rs 250: ICICI Direct. Explore now . Research firm MarketsandMarkets predicts that the global active pharmaceutical ingredient (API) market including chemical and biologic drug substances, both branded and generic will expand at a compound annual growth rate (CAGR) of 6.3%, and will climb from $157.95 billion in 2016 to $213.97 billion in 2021 (6). Series: NA | liability for the information given being complete or correct. Discover the right bonds meeting your investment amount & investment horizon, Fundamental, Stock Ideas, Multibaggers & Insights, Stock & Index F&O Trading Calls & Market Analysis, Commodity Trading Calls & Market Analysis, Currency Derivatives Trading Calls & Insights, Options Trading Advice and Market Analysis, Model portfolios, Investment Ideas, Guru Screens and Much More, Proprietary system driven Rule Based Trading calls, Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas, Details stock report and investment recommendation, 15-20 High Growth Stocks primed for price jumps, +272.45 (+1.57%) Keeping current with innovation. incurred by the company and what percentage of this is to the total sales. IRS. In this below table we have collated data of 200+ industries from the IRS database in a condensed format. 05.10.2017. The accounts receivables ratio indicates the total number of times a company manages to collect its average accounts receivable balance from its customers in a year. Company Name, Ticker, Competitors, else.. Net Income/Employee More about debt-to-equity ratio. Do you want to find out the Price to Earnings (PE) ratio history of SUN PHARMACEUTICAL INDUSTRIES and compare it with industry peers of SUN PHARMACEUTICAL INDUSTRIES . We specialize in managing cap tables, company shares, and valuations in an easy and effective manner. by Sarath Also known as the payables turnover ratio or creditors turnover ratio, this liquidity ratio measures the number of times a company pays its creditors over an accounting period. Best Restaurants In Chester, Va, However, this ratio has to be analyzed over a period of time to understand trends and in comparison with industry benchmarks. )","Trulicity (Eli Lilly)"],"crosshair":false},"yAxis":[{"gridLineDashStyle":"solid","crosshair":false}],"chart":{"backgroundColor":"","borderWidth":0,"borderColor":"","borderRadius":0,"zoomType":"none","panning":false,"panKey":"shift","plotBackgroundColor":"","plotBackgroundImage":"","plotBorderColor":"","plotBorderWidth":"","inverted":false},"subtitle":{"text":"","align":"center"},"tooltip":{"enabled":true,"backgroundColor":"rgba(255, 255, 255, 0.85)","borderWidth":"1","borderColor":"","borderRadius":3,"shared":false,"valuePrefix":"","valueSuffix":""},"legend":{"enabled":true,"backgroundColor":"","title":{"text":""},"layout":"horizontal","align":"center","verticalAlign":"bottom","borderWidth":"0","borderColor":"","borderRadius":"0"},"exporting":{"enabled":false,"chartOptions":{"plotOptions":{"series":{"dataLabels":{"enabled":false}}}},"filename":"","width":"","buttons":{"contextButton":{"align":"right","verticalAlign":"top","symbolStroke":"#666","text":""}}},"credits":{"enabled":true,"href":"https:\/\/market.us\/","text":"\u00a9 Market.us 2022"}},"type":"highcharts_basic_bar_chart","height":"400"}, engine: "highcharts", type: "highcharts_basic_bar_chart", title: "Leading Pharmaceutical Products By Sales Worldwide in 2021 (in Million U.S. What is Current Ratio? Guide with Examples - Deskera Blog This ratio measures the companys income generating ability as compared to the revenue, balance sheets assets, equity, and operating costs. We analyzed data for the 203 companies included in SIC 2834 (Pharmaceuticals), for their most recently reported annual financial results. This website uses cookies to improve your experience while you navigate through the website. This in turn determines the companys ability to pay back short-term liabilities, accounts payable, among other debts. We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. When evaluating stock from a specific sector, some key ratios are more informative than others. It is used to measure how much additional expenses (Depreciation, Amortization, Interest, Taxes, etc.) The scope of growth in the mutual fund investment space is immense in . A higher inventory turnover ratio is ideal as it indicates that sales are quick and there is a demand for the companys products as well. if(typeof(wpDataCharts)=='undefined'){wpDataCharts = {};}; wpDataCharts[525] = {render_data: {"options":{"title":{"text":"World Pharmaceutical Market Growth By Region 2021-2025","floating":false,"align":"center"},"series":[{"type":"","name":"Region","color":"","label":"Region","orig_header":"marketgrowthin","data":[12.6,10.9,8.6,6.7,5.7,4.9,4.5,4.5,4.3,4.2,2.8,-0.3],"yAxis":0}],"xAxis":{"categories":["Latin America","Indian subcontinent","Commonwealth of Independent States","Europe non-EU (incl. Needless to say, the company has to compare its ratio with others in the industry to gauge its operating efficiency. Financial Statement and Ratio Analysis Liquidity GSK MRK NVS Industry Average Current Ratio 1.1X 2.1X 1.2X 1.7X Quick Ratio 0.7X 1.4X 0.7X 1.2X ! Pharmaceutical Preparations: average industry financial ratios for U.S. listed companies Industry: 2834 - Pharmaceutical Preparations Measure of center: median (recommended) average Financial ratio Do you want to find out the Price to Sales (PS) ratio history of SUN PHARMACEUTICAL INDUSTRIES and compare it with industry peers of SUN PHARMACEUTICAL INDUSTRIES . Major Pharmaceutical Preparations Industry - CSIMarket Quick Ratio total ranking fell in contrast to the previous quarter from to 12. This score has to be compared with competitors and industry benchmarks to make good sense of it. This cookie is set by GDPR Cookie Consent plugin. More about current ratio . Key Financial Ratios for Airline Companies. Current Ratio Measures a firm's ability to pay its debts over the next 12 months. Reproduction of news articles, photos, videos or any other content in whole or in part in any form Within Healthcare sector 5 other industries have achieved higher asset turnover ratio. ideal current ratio for pharmaceutical industry. In general, a good current ratio is anything over 1, with 1.5 to 2 being the ideal. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The Current P/S Ratio of SUN PHARMACEUTICAL INDUSTRIES is 5.47. 71. It includes the compound annual growth rate, as well as regional submarkets. Inventory Turnover Ratio Defined: Formula, Tips, & Examples For more information on this data, you can contact us at info@eqvista.com. Necessary cookies are absolutely essential for the website to function properly. Similar to FAT, asset turnover ratio will also vary with industry. An ideal current ratio depends on the company's industry and historical development. This helps management spot problematic areas in the very early stages. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. , Dollars. The current ratio measures a company's capacity to pay its short-term liabilities due in one year. Despite the increasing global revenues, Latin American regions account for the lowest proportion of the global pharmaceutical market revenues. For example, this ratio is likely to be used as a reliable measure of net sales vs fixed assets in a manufacturing company which invests heavily in fixed assets such as the property, plant, and equipment (PPE). The main aim is achieved through ratio analysis of two pharmaceutical (Beximco and Square pharmaceutical) companies in Bangladesh. Johnson & Johnson is a leader in medical device products, research and development, pharmaceutical manufacturing, and consumer level. A score of 1.5 or lower is a clear red flag indicating the companys unstable financial position. Therefore, how efficiently they employ the capital that equity investors provide is indeed a key indicator of the effectiveness of the company's management and of the company's ultimate profitability. Biotechnology & Pharmaceuticals Industry - CSIMarket Quick ratio is also a quick test to predict the companys capacity to pay its current liabilities without having to sell its inventory for a loss or raise additional funds. Analytical cookies are used to understand how visitors interact with the website. cape dutch restaurant; Uncategorized; ideal current ratio for pharmaceutical industry; pregnant lucy and anna twins before and after guitar hero 3 guitar on rock band 4 0. Transforme seu WhatsApp em uma poderosa mquina de vendas The price-to-research ratio is calculated by dividing a company's market value by its last 12 months of expenditures on research and development. Current ratio 20-21 4.1.2. ideal current ratio for pharmaceutical industry. Either way, average accounts receivable ratio of a company will not make sense as a standalone number. ROI. This ratio is an important determiner of pricing, manufacturing, marketing, and purchasing decisions. It includes chemical study and regulation. There are many types of financial ratios. Pfizer current ratio for the three months ending December 31, 2022 was . IRS, ? But unlike FAT that accounts for only fixed assets, asset turnover ratio accounts for an average of total assets. In simple terms, financial ratios are the relationship established between various statistical data provided in the companys financial documents such as the balance sheet, income statement, cash flow statements, etc. However, most of the production is for export markets. That being said, how good a current ratio is In the export side of the world pharmaceutical market concentration ratios of 14.68%, 45.64%, 73.79%, and 90.37% were obtained for the 1, 4, 8, and 16 firm respectively for 2001-2012. Investors are pessimistic on the industry, indicating that they anticipate long-term growth rates will be lower than they have historically. However, as a general rule, a current ratio below 1.00 indicates that a company may have difficulty achieving its short-term commitment, and a current ratio above 1.50 generally indicates enough liquidity. Financial Ratio In this article, we will explore the idea of financial ratios with a deeper insight into some of the basic types of ratios.