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What are financial ratios and why are they an important part of the decision process?

April 26, 2017decision financial process ratios

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What are financial ratios and why are they an important part of the decision process?

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Financial ratios are used throughout the commercial industry by investors, lenders, real estate agents and brokers. They provide a common “yardstick” by which buying and lending decisions are made. Some of the financial ratios are Capitalization Rate (CAP Rate), Gross Rent Multiplier (GRM), Debt Coverage Ratio (DCR) and Loan to Value (LTV). Your RE/MAX Commercial associate can explain these and many more commonly used financial ratios.