Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

A financial ratio compares different sets of data to measure certain aspects of a company, such as its operating performance and financial strength. A financial ratio typically consists of a numerator ...

Financial ratios are powerful tools when it comes to investing. Terms like "P/E" and "PEG" get thrown around a lot, but many investors don't know what they mean or how they're used. While they may ...

Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital.

Financial ratios help to provide an economic overview of a business. Financial ratios are parameters that owners of a company need to check along with current or potential investors who can understand ...

The debt to asset ratio compares the total amount of debt a company holds to its assets. The ratio is used to determine to what degree a company relies on debt to finance its operations and is an ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

Financial ratios are calculations developed using data from a company's financial statements. Managers, investors and lenders analyze financial ratios for indications of a company's performance and ...

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. David Kindness is a Certified Public Accountant ...