Learn how to assess a company's financial strength using the EBITDA-to-interest coverage ratio, focusing on its ability to ...

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 ...

Understand what the current ratio measures, why it matters, and how to use it to assess and improve short-term liquidity.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

Here are some important metrics you can calculate that can tell you a lot about your business' performance. Calculating financial ratios is an important component of analyzing a business that can be ...

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 ...

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 ...

Managing a business without a clear handle on your financial data is like flying blind. You may be moving quickly, but you can’t see if you're on course or heading for turbulence. Over the years, in ...

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 ...

Financial statement analysis is useful in anticipation of future conditions and planning for actions that will improve the firm's future performance. Financial ratios are designed to help you evaluate ...