How to Use Financial Ratios to Analyze Stocks

Investing in the stock market can be a lucrative way to grow your wealth, but it requires careful analysis to make informed decisions. One of the most effective tools for analyzing stocks is the use of financial ratios. These ratios provide insights into a company’s financial health, performance, and potential for growth, helping investors make more informed decisions. In this article, we will explore various financial ratios, explain how to calculate them, and discuss how to use them to analyze stocks effectively.

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