Business Research: Financial Ratios

Financial ratios show the mathematical relationship between two numbers related to a company's performance. Once a ratio has been calculated according to the relevant formula, the ratio can be used to help determine how well a particular company is doing in comparison to its competitors and/or in comparison to its own past performance.

Here's how to find company ratios in various UMGC Library databases:

• Business Insights: Global
• Hoovers
• Mergent Online
• Nexis Uni
• Additional Resources

• Login to Business Insights: Global. 
• Click on the Companies link from the menu bar toward the top of the database's home page and then on the link for Financial Reports. 
• Browse or search for a U.S. company's name.
• Click on the Ratios tab on the resulting Fundamentals Analysis page.

You may also find financial ratios for publicly traded U.S. companies by clicking on the Companies link and then on the link for Investment Reports. Available reports vary by company, but Reuters Investment Profiles, when available, tend to contain financial ratios.

• Login to Hoovers. 
• Enter a company's name in the search box on the database's home page and click on its name from the results list.
• On the company information page, below the "Financials" heading on the left-hand side of the page, click on the Annual Ratios link and/or the Ratio Comparisons link. (Note that the Ratio Comparisons link will show financial ratios for the company that you searched for, as well as for the industry that that company is a part of, as well as for the sector that that company is a part of.)

• Login to Mergent Online. 
• Enter a company's name in the search box on the database's home page and click on the company's name from the search results.
• On the company information page, click on the Company Financials tab and then on the Ratios sub-tab.

• Login to Nexis Uni. 
• Click on the Menu link in the upper left-hand corner of the database's home page and then on Company Dossier.
• Enter a company's name in the "Company name" search box and click on its name on the results page.
• On the company snapshot page, click on Financial Overview from the menu on the left-hand side of the page and then click on the link for Ratio Analysis.

The UMGC Library contains many resources that can be used to find  more information about what financial ratios are, how they're calculated, what they can be used for, etc. A sampling of these resources is given below:

• Financial ratios - provides information about five categories of ratios: profitability, activity, liquidity, leverage, and market value
• Financial ratios - provides information about four categories of ratios: profitability/return on investment, liquidity, leverage, and efficiency
• Financial ratios - provides information about many types of financial ratios: profitability, asset utilization, leverage, liquidity, market value, and common size, as well as cautionary information about the use and interpretation of financial ratios
• Business ratios and formulas: A comprehensive guide (2nd edition) - per the preface for this e-book, "There are nearly 200 measurements itemized in this book. Each one is accompanied by a complete description, an explanation of the calculation, an example, and cautions regarding its use."
• Financial ratios: How to use financial ratios to maximise value and success for your business - per the foreword for this e-book, the book looks at financial ratios from the perspectives of customers, employees, suppliers, the community, and shareholders
• Intermediate accounting for dummies - this e-book presents 10 ratios for financial statement analysis, in addition to numerous other accounting-related topics
• Analysis of financial statements (3rd edition) - per the description for this e-book, the book's "authors demonstrate the nuts and bolts of financial analysis by applying the techniques to actual companies"