Key indicators, ratios

Key indicators is used to compare different companies that you want to buy stocks in. Key ratios can be used to select interesting stocks.

If you have a database of indicators for different companies, you can easily make the selection, and select those shares of most interest. Key indicators are financial measures or a combination of economic measures that provide information on important aspects of a company's financial situation.

Return on assets and return on equity are common indicators used in share evaluation. Other important key ratios is solvency and the debt to equity ratio. A formula combining these ratios are the leverage formula.