Types of Ratios in Financial Markets: Financial ratios are used to evaluate the financial performance and health of a company. Common types of financial ratios include liquidity ratios (e.g., current ratio, quick ratio), profitability ratios (e.g., net profit margin, return on equity), leverage ratios (e.g., debt-to-equity ratio, interest coverage ratio), and efficiency ratios (e.g., inventory turnover, asset turnover). These ratios provide insights into a companys financial stability, profitability, and operational efficiency.