When you want to get an idea of a company's financial condition, ratio analysis is one of the tools of the trade. In the following article, you'll learn about two useful balance sheet ratios: the debt ...

Use the Sharpe ratio to evaluate an asset's risk vs. return Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple ...

The three financial statements that every company produces include the income statement, the balance sheet and the statement of cash flows. The cash flow statement provides information about the state ...

If you’re a business owner looking for a loan, your lender will be looking for your solvency ratio. Of course, if you have a startup and are new to running a business, you may not know what a solvency ...

The K-Ratio measures the consistency and quality of an investment's returns over time, providing more detail than traditional ...

The inventory turnover ratio shows how efficiently a firm has used its inventory. This is important in a small business, where storing excess inventory can be an unwanted burden and cost. Calculate ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

Recent data shows homes sold for 99.4% of asking price, indicating strong buyer leverage. The sale-to-list ratio, calculated by dividing selling price by asking price, gauges negotiation power. A ...

Mutual funds' trading volume, reflected in the turnover ratio, affects their fees. High turnover ratios in actively managed funds can erode returns due to trading costs. Low turnover suggests a fund ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for ...

The compression ratio isn't just a number: it's one of the greatest determining factors in engine building. Compression ratio determines the type of fuel, how much boost, and has a significant ...