Tag: “Accounting Ratios

Accounting ratios are essential indicators of a company’s financial performance. They provide valuable insights into areas such as liquidity, profitability, efficiency, and solvency, covering a range of key metrics including return on investment, net worth, debt-to-equity ratio, working capital, ROA, and more. By taking into account both short- and long-term trends, accounting ratios can be utilized to gain a better grasp of a company’s overall financial position and profitability. Accounting ratios are often used by investors, lenders, and creditors to determine the health and risk of investing in a company.

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Accounting Ratios for Forex Trading: A Guide

Post Author By Matthew M. Lockett
Post Date September 4, 2023

5 min read

Accounting ratios are financial ratios used by investors and analysts to evaluate a company’s financial performance. There are many different accounting ratios available to traders and investors, ranging from traditional financial ratios like the price/earnings ratio to more specialized ratios such as the kurtosis ratio. Accounting ratios are commonly used in forex trading for weakening and strengthening trends in currency pairs. By comparing the relative financial performance of two currency pairs, traders can better determine which pair offers higher reward potential. Additionally, investors often use accounting ratios in order to make better-informed trading decisions and better manage their risk.