List of Financial Ratios Advantages & Disadvantage Types of Ratios
Though some benchmarks are set externally (discussed below), ratio analysis is often not a required aspect of budgeting or planning. For example, if the average P/E ratio of all companies in the S&P 500 index is 20, and the majority of companies have P/Es between 15 and 25, a stock with a P/E ratio of […]