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 ...

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

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

Learn how to calculate and interpret the cash flow-to-debt ratio to assess a company's ability to manage debt effectively. Includes formulas and real-world examples.

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 ...

The founder of a new business is often not be a financial expert who understands all of the financial formulas necessary to manage all areas of running a business. Both startups and businesses that ...

Magic Formula Investing – quantitative metrics used to find discounted quality businesses. Learn its components, steps, ...

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 ...

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 ...

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 ...