Investogist
No Result
View All Result
Monday, September 29, 2025
  • News
    • All
    • Africa
    • Nigeria
    • World
    Buhari finally inaugurates Dangote refinery, facts about the refinery

    JUST IN: Dangote Refinery resumes petrol sales in naira after FG’s intervention

    U.S. Reinstates Five-Year Visas for Ghanaians Following Deportation Deal

    U.S. Reinstates Five-Year Visas for Ghanaians Following Deportation Deal

    Dangote refinery to export first fuel cargoes

    PENGASSAN directs members to stop gas, crude supply to Dangote Refinery

    NNPC says no plan to increase petrol price in March

    IPMAN announces petrol price hike as Dangote Refinery suspends petrol sale in Naira

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    Ebuka Obi Commissions Southeast First Free Psychiatric Hospital in Anambra

    Ebuka Obi Commissions Southeast First Free Psychiatric Hospital in Anambra

    UBA declares N0.25k interim dividend for H1 2025

    UBA declares N0.25k interim dividend for H1 2025

    Breaking: President Tinubu dissolves Boards of Parastatals, Agencies, Institutions

    State of Emergency ends in Rivers State: Tinubu’s full statement

    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    • Nigeria
    • Africa
    • World
  • Economy
    • All
    • Budgets
    • Economic Data
    • Policies
    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    The New Tax Acts and Tax ID – What You Need to Know

    The New Tax Acts and Tax ID – What You Need to Know

    “CBN plans to shut down financial transactions” – Apex Bank warns of fake news

    CBN’s Monetary Policy Committee retains interest rate at 27.50%

    President Tinubu approves establishment of South-East Investment Company

    President Tinubu approves establishment of South-East Investment Company

    UK tightens visa rules for care workers, skilled workers and students

    UK tightens visa rules for care workers, skilled workers and students

    United States scraps visa dropbox service for Nigerian applicants

    President Donald Trump cancels protection for 500,000 Haitian migrants

    Spain golden visa scheme ends as Portugal and Greece demand increases

    Spain golden visa scheme ends as Portugal and Greece demand increases

    CBN fines nine banks 150 million Naira each for failing to dispense cash

    CBN ends free ATM withdrawals for other banks’customers

    FG increases private university application fee from N5m to N25m

    FG increases private university application fee from N5m to N25m

    • Policies
    • Budgets
    • Economic Data
  • Business
    • All
    • Agriculture
    • Companies
    • Industry
    • Technology
    Marketers are not buying our petrol, we have 500 million liters in our tank – Dangote

    FG Summons PENGASSAN, Dangote Refinery for Emergency Talks to Avert Nationwide Strike

    Ecobank reports N35.883 billion Profit for 2020 Financial Year, 63.92% lower than 2019 figures

    Ecobank completes sale of its stake in Ecobank Mozambique to FDH Bank Plc

    Existing Unity Bank Shareholder Acquires AMCON’s 34% Stake

    Existing Unity Bank Shareholder Acquires AMCON’s 34% Stake

    Toyota Recalls 1,500 Supra Vehicles Over Fire Hazard Concerns

    Toyota Recalls 1,500 Supra Vehicles Over Fire Hazard Concerns

    MTN Nigeria to pay over N200 billion final dividend for 2022

    List of Dividends announced in 2025, qualification and payment dates

    Google DeepMind Launches Gemini Robotics 1.5

    Google DeepMind Launches Gemini Robotics 1.5

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    First HoldCo Plc Appoints New Group Company Secretary

    First HoldCo Plc Appoints New Group Company Secretary

    Guaranty Trust Bank completes corporate re-organization, constitutes Board of Holding Company (GTCO)

    GTCO declares ₦1.00 interim dividend for first half of 2025

    • Companies
    • Industry
    • Technology
  • Markets
    • All
    • Commodities
    • Cryptocurrencies
    • Forex
    • Rates & Bonds
    • Stocks/Equities
    FY 2020: FCMB Group Plc gross earnings, profit, assets see double-digit growth rates

    FCMB Group Lists 3.16bn Ordinary Shares on NGX Following Loan-to-Equity Conversion

    Bitcoin might be getting ready for $75,000

    MicroStrategy Buys 850 Bitcoin for $99.7 Million

    Falana sues Meta, demands $5m over invasion of privacy

    Meta Unveils Next-Gen Smart Glasses with Built-In AI and AR

    Dangote Refinery Marks Historic First Petrol Export to U.S., Boosting Nigeria’s Energy Profile

    Dangote Refinery Marks Historic First Petrol Export to U.S., Boosting Nigeria’s Energy Profile

    Elon Musk’s Tesla Share Price dropped nearly 16% in a “very intense 7 days”

    Elon Musk buys US$1 Billion worth of Tesla Inc. shares

    Beta Glass Plc Shareholders to be presented with a N1.04 dividend for 2020

    STANBIC IBTC ETF 30 announces ₦3.144 interim Dividend

    CAP Plc Shareholders approve N2.10kobo dividend per ordinary share for 2020 financial year

    SIAML Pension ETF 40 announces ₦12.44 interim Dividend

    Cutix Plc founder sells additional 1.8 million shares of the company

    VFD Group Plc Employees and others sell millions of VFD Group shares

    Nigerian Exchange – Stock Market report for the week ended 7th July, 2023

    The Nigerian Exchange records impressive performance in H1 2025

    • Stocks/Equities
    • Forex
    • Rates & Bonds
    • Commodities
    • Cryptocurrencies
  • Travel & Tours
    • Arts & Entertainment
    • Nature
    • Places & People
  • Opinion & Analysis
    • All
    • Columnists
    • Editorials
    • Investogist Business Saturday
    • Op-ed
    How does family of 6 survive with income of N250,000 a month

    How does family of 6 survive with income of N250,000 a month

    Trump wins a resounding victory in first Republican primary in Iowa

    How Donald Trump won the 2024 U.S Presidential Election

    Rovina Medical Diagnostic Services offers free Breast and Prostrate cancer scans

    Rovina Medical Diagnostic Services offers free Breast and Prostrate cancer scans

    Security features of the new naira notes revealed by the CBN

    New hope for Naira fixed income savers?

    The Nigerian Stock Market: Has Tinubu’s Election impacted the Market Negatively?

    Nigerian Exchange gains 5.37% in Tinubu’s first week, highest for any President since return to Democracy

    The Nigerian Stock Market: Has Tinubu’s Election impacted the Market Negatively?

    The Nigerian Stock Market: Has Tinubu’s Election impacted the Market Negatively?

    Just in: Bandits attack President Buhari’s convoy in Katsina, two injured

    2015 vs 2023 Data: Nigeria situation went from bad to worse under Buhari

    Who is Hiba Abouk soon to be Achraf Hakimi’s ex-wife worth millions of dollars?

    Who is Hiba Abouk soon to be Achraf Hakimi’s ex-wife worth millions of dollars?

    LP won Obio-Akpor LGA Rivers State not APC as announced – INEC’s IReV

    APC won Abua-Odual and Ahoada East LGAs of Rivers State as announced – INEC’s IRev

    • Editorials
    • Book Club
    • Investogist Business Saturday
    • Op-ed
  • Sports
    • Football
  • Vacancies
Investogist
  • News
    • All
    • Africa
    • Nigeria
    • World
    Buhari finally inaugurates Dangote refinery, facts about the refinery

    JUST IN: Dangote Refinery resumes petrol sales in naira after FG’s intervention

    U.S. Reinstates Five-Year Visas for Ghanaians Following Deportation Deal

    U.S. Reinstates Five-Year Visas for Ghanaians Following Deportation Deal

    Dangote refinery to export first fuel cargoes

    PENGASSAN directs members to stop gas, crude supply to Dangote Refinery

    NNPC says no plan to increase petrol price in March

    IPMAN announces petrol price hike as Dangote Refinery suspends petrol sale in Naira

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    Ebuka Obi Commissions Southeast First Free Psychiatric Hospital in Anambra

    Ebuka Obi Commissions Southeast First Free Psychiatric Hospital in Anambra

    UBA declares N0.25k interim dividend for H1 2025

    UBA declares N0.25k interim dividend for H1 2025

    Breaking: President Tinubu dissolves Boards of Parastatals, Agencies, Institutions

    State of Emergency ends in Rivers State: Tinubu’s full statement

    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    • Nigeria
    • Africa
    • World
  • Economy
    • All
    • Budgets
    • Economic Data
    • Policies
    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    China Warns Against NATO Tariffs After Trump’s Suggestion to Target Chinese Imports

    The New Tax Acts and Tax ID – What You Need to Know

    The New Tax Acts and Tax ID – What You Need to Know

    “CBN plans to shut down financial transactions” – Apex Bank warns of fake news

    CBN’s Monetary Policy Committee retains interest rate at 27.50%

    President Tinubu approves establishment of South-East Investment Company

    President Tinubu approves establishment of South-East Investment Company

    UK tightens visa rules for care workers, skilled workers and students

    UK tightens visa rules for care workers, skilled workers and students

    United States scraps visa dropbox service for Nigerian applicants

    President Donald Trump cancels protection for 500,000 Haitian migrants

    Spain golden visa scheme ends as Portugal and Greece demand increases

    Spain golden visa scheme ends as Portugal and Greece demand increases

    CBN fines nine banks 150 million Naira each for failing to dispense cash

    CBN ends free ATM withdrawals for other banks’customers

    FG increases private university application fee from N5m to N25m

    FG increases private university application fee from N5m to N25m

    • Policies
    • Budgets
    • Economic Data
  • Business
    • All
    • Agriculture
    • Companies
    • Industry
    • Technology
    Marketers are not buying our petrol, we have 500 million liters in our tank – Dangote

    FG Summons PENGASSAN, Dangote Refinery for Emergency Talks to Avert Nationwide Strike

    Ecobank reports N35.883 billion Profit for 2020 Financial Year, 63.92% lower than 2019 figures

    Ecobank completes sale of its stake in Ecobank Mozambique to FDH Bank Plc

    Existing Unity Bank Shareholder Acquires AMCON’s 34% Stake

    Existing Unity Bank Shareholder Acquires AMCON’s 34% Stake

    Toyota Recalls 1,500 Supra Vehicles Over Fire Hazard Concerns

    Toyota Recalls 1,500 Supra Vehicles Over Fire Hazard Concerns

    MTN Nigeria to pay over N200 billion final dividend for 2022

    List of Dividends announced in 2025, qualification and payment dates

    Google DeepMind Launches Gemini Robotics 1.5

    Google DeepMind Launches Gemini Robotics 1.5

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    NASCON Allied Industries Plc. Announces Closed Period for Q3 2025

    First HoldCo Plc Appoints New Group Company Secretary

    First HoldCo Plc Appoints New Group Company Secretary

    Guaranty Trust Bank completes corporate re-organization, constitutes Board of Holding Company (GTCO)

    GTCO declares ₦1.00 interim dividend for first half of 2025

    • Companies
    • Industry
    • Technology
  • Markets
    • All
    • Commodities
    • Cryptocurrencies
    • Forex
    • Rates & Bonds
    • Stocks/Equities
    FY 2020: FCMB Group Plc gross earnings, profit, assets see double-digit growth rates

    FCMB Group Lists 3.16bn Ordinary Shares on NGX Following Loan-to-Equity Conversion

    Bitcoin might be getting ready for $75,000

    MicroStrategy Buys 850 Bitcoin for $99.7 Million

    Falana sues Meta, demands $5m over invasion of privacy

    Meta Unveils Next-Gen Smart Glasses with Built-In AI and AR

    Dangote Refinery Marks Historic First Petrol Export to U.S., Boosting Nigeria’s Energy Profile

    Dangote Refinery Marks Historic First Petrol Export to U.S., Boosting Nigeria’s Energy Profile

    Elon Musk’s Tesla Share Price dropped nearly 16% in a “very intense 7 days”

    Elon Musk buys US$1 Billion worth of Tesla Inc. shares

    Beta Glass Plc Shareholders to be presented with a N1.04 dividend for 2020

    STANBIC IBTC ETF 30 announces ₦3.144 interim Dividend

    CAP Plc Shareholders approve N2.10kobo dividend per ordinary share for 2020 financial year

    SIAML Pension ETF 40 announces ₦12.44 interim Dividend

    Cutix Plc founder sells additional 1.8 million shares of the company

    VFD Group Plc Employees and others sell millions of VFD Group shares

    Nigerian Exchange – Stock Market report for the week ended 7th July, 2023

    The Nigerian Exchange records impressive performance in H1 2025

    • Stocks/Equities
    • Forex
    • Rates & Bonds
    • Commodities
    • Cryptocurrencies
  • Travel & Tours
    • Arts & Entertainment
    • Nature
    • Places & People
  • Opinion & Analysis
    • All
    • Columnists
    • Editorials
    • Investogist Business Saturday
    • Op-ed
    How does family of 6 survive with income of N250,000 a month

    How does family of 6 survive with income of N250,000 a month

    Trump wins a resounding victory in first Republican primary in Iowa

    How Donald Trump won the 2024 U.S Presidential Election

    Rovina Medical Diagnostic Services offers free Breast and Prostrate cancer scans

    Rovina Medical Diagnostic Services offers free Breast and Prostrate cancer scans

    Security features of the new naira notes revealed by the CBN

    New hope for Naira fixed income savers?

    The Nigerian Stock Market: Has Tinubu’s Election impacted the Market Negatively?

    Nigerian Exchange gains 5.37% in Tinubu’s first week, highest for any President since return to Democracy

    The Nigerian Stock Market: Has Tinubu’s Election impacted the Market Negatively?

    The Nigerian Stock Market: Has Tinubu’s Election impacted the Market Negatively?

    Just in: Bandits attack President Buhari’s convoy in Katsina, two injured

    2015 vs 2023 Data: Nigeria situation went from bad to worse under Buhari

    Who is Hiba Abouk soon to be Achraf Hakimi’s ex-wife worth millions of dollars?

    Who is Hiba Abouk soon to be Achraf Hakimi’s ex-wife worth millions of dollars?

    LP won Obio-Akpor LGA Rivers State not APC as announced – INEC’s IReV

    APC won Abua-Odual and Ahoada East LGAs of Rivers State as announced – INEC’s IRev

    • Editorials
    • Book Club
    • Investogist Business Saturday
    • Op-ed
  • Sports
    • Football
  • Vacancies
No Result
View All Result
Investogist
No Result
View All Result
Home Financial Education

Investogist Business Saturday – Financial Ratios

Saturday, 27 February 2021, 11:01 pm
in Financial Education, Investogist Business Saturday, Opinion & Analysis
0
Investogist Business Saturday – Financial Ratios
Share Share Share Share Send as Email

Financial ratios also known as accounting ratios are numerical values calculated by the using the information available on a firm’s financial statements. These values are essential in summarizing the overall health of a company.

The three core financial statements are:

  • Statement of profit or loss also known as income statement – shows a company’s profit over a period.
  • Statement of financial position or balance sheet – shows the company’s assets, liabilities and shareholders’ equity.
  • Statement of cash flow – shows information of the cash a company generated or used over a given period. This statement has three parts: cash flow from operating activities, cash flow from investing activities and cash flow from financing activities.

Financial ratio analysis is widely used by shareholders, banks and creditors, the management of the business as well as the competitors to assess and compare companies’ performances.

  • Read: Local Bourse Extends Losing Streak…with All Share Index Below 40,000pts
  • Visit Investogist’s homepage for more articles

The comparison can be over a period or across an industry. Comparing ratios of firms in the different industries will be misleading because the level of risk will differ greatly. The comparison over a period shows whether a company’s performance is improving or deteriorating.

Financial ratios are grouped into several categories;

  • Profitability ratios
  • Market value ratios
  • Liquidity ratios
  • Leverage ratios
  • Efficiency ratios

Financial ratio is broad topic, however I will narrow the discussion to the basic and frequently used ratios.

Profitability ratios: these ratios measures the performance of company’s management team and how well they can convert sales revenue into profit.

It also measures how well a company utilizes its assets, and shareholders’ equity in generating earnings and as well the management of its operating costs.

Just like all ratios, comparing these over a period would indicate whether the performance and profitability of a company were improving or worsening.

Common profitability ratios:

Gross profit margin: shows how much profit a company makes after paying for cost of goods.

Gross profit margin (%): = (gross profit/sales revenue)*100

Operating profit margin shows how a company’s profitability from its operations before the removal of interests and taxes. It helps investors to know how the company were able to manage its cost of operations.

Operating profit margin = (Operating profit/sales revenue)*100

Net profit margin shows how much net income/net profit the company generated from its revenue.

The limitation of net profit margin is that it can be influenced by one-off items such as the sale of an asset, which would temporarily boost profits.

Net profit margin (%): = (net profit/sales revenue)*100

Return on Assets ratio (ROA); this ratio measures how efficiently a company is utilizing its asset, in other words it measures a firm’s profitability in relation to its total assets.

ROA = Net profit / Total assets

Return on Equity ratio (ROE): this ratio measures how well a business is using its equity to generate profit.

ROE = Net profit / Shareholder’s equity

Shareholders equity is the total value of assets less total value of liabilities. The aim

of most businesses is to increase the shareholders’ equity by raising the value of the business’s assets more than any increase in the value of liabilities.

The higher these values are, the more profitable the company is.

Market value ratios

These ratios are used by investors to evaluate the share price of publicly traded companies. Investors use these ratios to analyse whether share price of a company is correctly valued, overvalued or undervalued so as to make informed decision about investing in the stocks of the company.

Some of these ratios are:

Earnings per share ratio (EPS): measures the amount of income earned for each outstanding share. Note that if a company has zero or negative earnings (loss), the company’s EPS will also be zero or negative.

Price Earnings ratio (P/E): measures the current price of a company’s share in relation to its EPS. A high P/E ratio can imply that a company’s stock is overvalued or that investors are expecting the company to grow in the future and vice versa.

Price-earnings ratio = Share price / Earnings per share

Dividend yield: this shows in percentage how much a company pays in dividends in relation to its share price.

Dividend yield = (Dividend per share / Share price)*100

In the next article we will discuss the Liquidity and Leverage ratios.

Ifunanya Ikueze
Ifunanya Ikueze

Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.

Related Posts:

  • Chibyke
    Investogist Business Saturday: An Introduction to…
  • E.E AI Researcher 2+
    Investogist Business Saturday: Living in a world…
  • Financial Ratios,,
    Financial Ratios: Liquidity and Leverage Ratios
  • Financial ratios
    Financial ratios: Efficiency ratios explained
Previous Post

Local Bourse Extends Losing Streak…with All Share Index Below 40,000pts

Next Post

Financial Ratios: Liquidity and Leverage Ratios

Next Post
Financial Ratios: Liquidity and Leverage Ratios

Financial Ratios: Liquidity and Leverage Ratios

Please login to join discussion
  • Trending
  • Comments
  • Latest
MTN Nigeria to pay over N200 billion final dividend for 2022

List of Dividends announced in 2025, qualification and payment dates

Buhari finally inaugurates Dangote refinery, facts about the refinery

JUST IN: Dangote Refinery resumes petrol sales in naira after FG’s intervention

FY 2020: FCMB Group Plc gross earnings, profit, assets see double-digit growth rates

FCMB Group Lists 3.16bn Ordinary Shares on NGX Following Loan-to-Equity Conversion

Marketers are not buying our petrol, we have 500 million liters in our tank – Dangote

FG Summons PENGASSAN, Dangote Refinery for Emergency Talks to Avert Nationwide Strike

Marketers are not buying our petrol, we have 500 million liters in our tank – Dangote

FG Summons PENGASSAN, Dangote Refinery for Emergency Talks to Avert Nationwide Strike

Buhari finally inaugurates Dangote refinery, facts about the refinery

JUST IN: Dangote Refinery resumes petrol sales in naira after FG’s intervention

U.S. Reinstates Five-Year Visas for Ghanaians Following Deportation Deal

U.S. Reinstates Five-Year Visas for Ghanaians Following Deportation Deal

Ecobank reports N35.883 billion Profit for 2020 Financial Year, 63.92% lower than 2019 figures

Ecobank completes sale of its stake in Ecobank Mozambique to FDH Bank Plc

Quick Links

News
Economy
Markets
Business
Opinion & Analysis

Newsletter Signup

Contact Investogist

info@investogist.com

  • About Us
  • Terms & Conditions
  • Privacy Policy
  • Contact Us

Copyright © 2025 investogist.com, All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • News
    • Nigeria
    • Africa
    • World
  • Economy
    • Policies
    • Budgets
    • Economic Data
  • Business
    • Companies
    • Industry
    • Technology
  • Markets
    • Stocks/Equities
    • Forex
    • Rates & Bonds
    • Commodities
    • Cryptocurrencies
  • Travel & Tours
    • Arts & Entertainment
    • Nature
    • Places & People
  • Opinion & Analysis
    • Editorials
    • Book Club
    • Investogist Business Saturday
    • Op-ed
  • Sports
    • Football
  • Vacancies

Copyright © 2025 investogist.com, All Rights Reserved