The current ratio is just one indicator of financial health. Like most performance measures, it should be taken along with other factors for well-contextualized decision-making.

The Best Financial Statement to Identify Solvency. Taking on debt can be perfectly reasonable, and desirable, for a business to do if operations are profitable.

The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt obligations based on its current ...

Understanding how financial statements influence valuation measures helps you spot both positive and negative changes.

By using the information from your business' financial statements, you can calculate several useful financial ratios that can help you analyze how successfully your business is operating.

Learn financial statement analysis techniques, including horizontal, vertical, and ratio analysis, to assess company ...

Calculation To calculate a return on assets ratio, first find the figures for total assets on the current and previous year's balance sheets.

Continuing the discussion started in my last article, which focused on F&B companies needing strong balance sheets to further growth, this article will focus on best practices in income statements ...

This ratio shows a company's profitability relative to the total revenue it produces. Here is how you can calculate it, as well as what it means.

Thanks -- and Fool on! The article How to Calculate a Company's Total Margin Financial Ratio originally appeared on Fool.com. The Motley Fool has no position in any of the stocks mentioned.