What is nøgletal (financial ratios)?

In short

Nøgletal are calculated figures that make accounts easier to judge — profit margin, solvency ratio, liquidity ratio, return on assets. They show earnings, resilience and ability to pay.

In practice

Ratios are most useful in comparison — against previous years or the industry. Banks and investors typically look at solvency and earnings when assessing a business.

Related terms

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