## Search results

**Relative Valuation**

Comparative analysis Relative valuation is stock valuation method that gained its popularity because of simplicity and practical importance. The key principle of relative valuation is about valuation multi

http://www.investingforbeginners.eu/relative_valuation

**Liquidity**

(1) Market liquidity is a characteristic of a security or other traded investment that shows how easy it is convertible in to cash at a market value. Usually when investor decides to sell some investment and

http://www.investingforbeginners.eu/liquidity

**Working Capital Ratio**

Working capital ratio may have several meanings in practice: (1) Working capital ratio = Working capital / Sales (2) Working capital ratio =

**current ratio**= Current assets / Current liabilities (3)

http://www.investingforbeginners.eu/working_capital_ratio

**Financial Ratios**

Financial ratios are ratios that are used in financial analysis or in other words that are using financial data of a company. Such financial data usually is found in financial statements (income statement, balanc

http://www.investingforbeginners.eu/financial_ratios

**Quick Ratio**

Quick ratio (also called ‘acid test ratio’) is a financial ratio that measures company’s financial liquidity. This ratio compares company’s most liquid assets and short-term liabilities. I

http://www.investingforbeginners.eu/quick_ratio

**current ratio****current ratio**is a financial ratio that measures company’s financial liquidity in short term. In simple words, this ratio compares company’s short-term assets to its short term liabilities. If short-t

http://www.investingforbeginners.eu/current_ratio

**Cash Ratio**

Cash ratio is a financial ratio that measures company’s financial liquidity over short term. It compares company’s cash reserves to short-term liabilities. If ‘cash ratio’ is high, it may

http://www.investingforbeginners.eu/cash_ratio

**Liquidity Ratio**

Liquidity ratio is a ratio that measures company’s liquidity. At first, it is needed to mention that liquidity may have two meanings: financial liquidity of a company or market liquidity of some asset. Liqu

http://www.investingforbeginners.eu/liquidity_ratio