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These metrics delve into the efficiency and effectiveness of a company’s operations, exploring elements like inventory turnover and debt coverage ratios. For instance, a high inventory turnover might suggest efficient inventory management, while robust debt coverage reflects financial stability.
4. Valuation Metrics
Valuation ratios assist in determining whether a stock's price is justified when compared to its earnings or assets. Metrics such as price-to-earnings (P/E) and price-to-sales ratios are crucial — they guide investors towards fair valuation targets.
Tools for Stock Screening
There are numerous online resources available for stock screening, three of the most recognized include: