Karami et al., study (2009) showed analysis of
the role of financial ratios in explaining stock returns,
using information from listed companies in Tehran
Stock Exchange during 2000-2006 has been carried
out. In this study, four groups of twelve financial
ratios, liquidity ratios, leverage, activity and
profitability have been studied. The hypothesis of this
study, we used a multivariate regression model that
simultaneously examines the relationship between
financial ratios and stock returns. The results of this
study indicate that the current ratio, debt to you,
return on equity and profit to sales, there is a positive
relation with stock returns. Based on the findings,
these financial ratios small percentage of the variation
in stock returns, the figure turns.