Most of us (with the exception of majors and those who love to work with numbers) won't take Finance unless we have to. We reluctantly wade through the classes hoping that the number junkies understand it all, and praying that others in the real world will provide guidance when we need it.

At College-Cram, we try to make things easier for you with our financial ratios series. We have assembled the most used ratios in chapters covering:

• Liquidity Ratios
• Profitability Ratios
• Debt Management Ratios
• Asset Management Ratios
• Dividend/Market Value Ratios

and placed them in our Finance and Business Math libraries.

For me, the biggest frustration I had with all the ratios wasn't how the math worked, but where to find the numbers and then how to use them. Our eight ratios covering Profitability do a much better job of teaching than the printed examples found in the financial ratios chapters in my Finance textbook.

Each Profitability Ratio Cramlet™ works in conjuction with the financial statements found in the Finance and Business Math libraries. (In fact, each ratio Cramlet has the required financial statements embedded into the Cramlet itself for easy reference.) Each ratio Cramlet begins with a brief explanation of what the ratio is designed to achieve and how it is to be used. The Cramlet walks you through each step of solving the ratio by finding (and clicking) the appropriate numbers on the corresponding financial statements. In other words, you don't just plug in numbers -- you go find the numbers from the financial statements, further developing your understanding of where the numbers come from.

The Basic Earning Power Ratio Cramlet™, for example, explains that the ratio is intended for direct comparison of similar firms that use different financing strategies or have different tax situations. It then walks you through selecting the correct items from the Income Statement and Balance Sheet to determine the EBIT:

With the EBIT calculated, you are then prompted to find the total assets on the Balance Sheet. The final step calculates the Basic Earning Power Ratio, with a brief explanation of how to interpret the ratio for usage within the appropriate industry.

As an added feature in all the ratio Cramlets, you can change the values and click "Next" to recalculate the ratio. (This is useful for checking homework or continued repetition, helping you master the steps for the Basic Earning Power Ratio.)

Profitability Ratios are one of our more popular series of financial ratio Cramlets™ within the Finance and Business Math libraries of College-Cram. Check them out and see how easy financial ratios can be.