[Series 65] 9, Financial Ratios and Analysis

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The current ratio measures short-term liquidity, while the quick (acid-test) ratio provides a stricter measure by excluding less-liquid inventory. - The debt-to-equity ratio reveals a company's financial leverage and risk, with a higher ratio indicating greater reliance on debt. - The P/E ratio values a company based on its current earnings, but must be compared with companies in the same industry to be meaningful. - The PEG ratio enhances the P/E ratio by factoring in earnings growth, offering a more complete picture of a stock's valuation. - Return on Equity (ROE) measures a company's profitability by showing how effectively it generates profit from shareholder investments. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep