Calculating financial ratios is an important component of analyzing a business that can be extremely helpful to business owners. By using the information from your business' financial statements, you ...
Financial ratios provide business owners with a quantitative analysis of their company's financial information. Business owners can also use financial ratios to create benchmarks for comparative ...
Learn to calculate the Sharpe Ratio in Excel for insightful investment analysis. Our guide will help you assess risk versus ...
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 ...
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Guide to Financial Ratios

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 ...
Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...
There are several ways of evaluating the profitability of a business, and one of the simplest ways is with the total margin ratio. This ratio shows a company's profitability relative to the total ...
Evaluating stocks to buy and sell can be a tricky business, even with all of the data available at your fingertips. There are dozens of ratios and metrics that give clues to the financial health of a ...
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 ...
Learn to calculate inflation using recent and past prices to gauge economic conditions. Utilize the P/E ratio to assess if a stock is priced appropriately compared to earnings. Understand dividend ...
Find out about the average debt-to-equity (D/E) ratio in the airline industry and why D/E ratios are critical for comparing ...