Ratios—one variable divided by another—are financial analysis tools that show how companies are performing in their own right and relative to one another.

Other ratios, such as a debt-to-equity ratio, represent more financial strength if they are lower. Determine the formula for the financial ratio that you want to derive.

When it comes to investing, financial ratios can help you be an informed investor. ... Working Capital Turnover Ratio: Meaning, Formula, and Example. Cash Ratio: Definition, ...

Understanding key financial ratios will help you stay on top of your accounting needs. Debt-to-Equity Ratio The debt-to-equity ratio allows lenders to compare the assets of a company with its debt ...

If you're going to become an investor, there are a few things you should know — like these formulas. Read on to learn more.

Here are ten financial ratios that can tell you most of what you need to know when you’re scouring the market for good stocks to buy. ... The formula for ROA is net income divided by total assets.

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 ...

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, ... It's also known as the acid-test ratio. The formula is as follows: ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

From there you can calculate financial ratios to aid your understanding of the business and where the stock’s price might be headed. Here are the most important ratios for investors to know when ...

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 ...