What are the key financial metrics I should know?
An example of an AI chatbot conversation about understanding financial metrics.
What are the key financial metrics I should know?
Key financial metrics include revenue, profit margin, return on investment (ROI), and current ratio.
Can you explain what profit margin means?
Profit margin is the percentage of revenue that exceeds the costs of goods sold, indicating profitability.
How do I calculate ROI?
ROI is calculated by dividing the net profit by the cost of the investment, then multiplying by 100 to get a percentage.
What is the current ratio and why is it important?
The current ratio measures a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.
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