Financial ratios are used almost universally by companies of all sizes to provide numerical information on the profitability, health and direction of the business. Financial ratios provide useful ...

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.

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in ...

A common way that analysts and investors measure the performance of a company selling goods is by using financial ratios. One ratio that is useful for evaluating a company's effectiveness in utilizing ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how ...

What is a good return for your portfolio? If a bond portfolio generated a 4% return over the past year, it could be considered a pretty decent return. However, investors who prioritized high-growth ...

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 ...

Check both net and gross expense ratios when choosing funds; discounts may be temporary. Aim for funds with low expense ratios to enhance investment returns over time. Passively managed index funds ...