The Dividend Hunter
                     Most Important 
Ratios That Every 
Investor Must 
Know
Evaluating a company before investing 
is the most important task and also 
difficult one. It requires in-depth 
reading of financial reports such as 
balance sheets etc. From these ratios, 
you can select the right company to 
invest in. Let's take a look at these 
ratios one by one.
Earnings Per 
ESPSh isa dreteermined annually and quarterly. It is 
measured by dividing the net profit of a company 
that it has made divided to the total share of a 
company. If a company's EPS is high, there are 
more chances of getting success in it. Try to check 
the company's EPS for at least 5 years.
The PE ratio is the most 
used ratio in investing. A Price to 
high PE means investors are 
paying high for shares in a Earnings 
particular firm. It is easy to 
find a share cost which is Ratio
the closing price of a stock.
Debt to The DE ratio measures the 
relationship between the 
Equity capital amount that has been 
borrowed and the capital 
amount contributed by 
shareholders. If DE increases, 
it becomes risky as it shows 
an organization is utilizing 
leverage and may have a 
weak equity position.
Reference For 
Complete Information
If you want to know more in detail about the other important 
ratios and ways to calculate them, click here.
Reference For Other 
Valuable Resources For 
Investors
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