20 Ratios every investor should know

We love value investing so when we ran into old school value we had to share it. Here they list 2o ratios to look at in order to determine whether or not a company is in good shape.

#1. The Quick ratio, you’ll hear of this term time and time again. Quick ratios are used in order to determine whether a company can meet its short term obligations such as current accounts payable, interest payments and operating expenses.
Quick Ratio = (current assets – Inventories)/Current Liabilities
Using Apples 2016 10K for example we have (current assets of 106,869inventories of 2,132)/current liabilities of 79,006 = quick ratio of 1.33

AAPL Balance Sheet 10K



#2. The Current ratio, this is used

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