Relationship between financial ratios and stock value
Keywords:
financial ratios, stock value, leverage ratiosAbstract
Financial ratios examines the items in the financial statements and converts them from Rial concept to comparable ratios. These ratios establish a meaningful relationship between the effective factors of financial statements and by establishing this relationship between the information in the financial reports, it gives the users the power of analysis. In this research, the relationship between the changes in financial ratios and the stock value of companies listed in the Tehran Stock Exchange is investigated. For this purpose, financial ratios were divided into liquidity ratios, profitability ratios, efficiency ratios, and debt ratios to measure liquidity ratios from current ratio and current ratio indicators, to measure profitability ratios from gross profit margin ratios, Return on sales, return on assets and return on equity were used. Also, in order to measure efficiency ratios, indicators of inventory turnover, accounts receivable turnover, and debt payment period were used, and finally, debt ratio and capital ratio were used to measure leverage ratios. The results showed that the results of the first hypothesis showed that there is a positive and significant relationship between the current ratio and the future ratio with stock value.
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