The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

The accounts receivable turnover ratio measures the number of times a company collects its average accounts receivable ...

The debt-to-equity (D/E) ratio is a financial metric that measures a company's financial leverage by comparing its total debt to shareholders' equity. It indicates how much debt a company uses to ...

Profitability ratios are financial metrics used to evaluate a business's degree of success in generating a profit.

In his book, "Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to Analyse Any Business on the Planet", Axel Tracy groups and profiles key investment ratios. In this digest, we look ...

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 ...

EV/EBITDA is a valuation ratio that compares the total valuation of a company to EBITDA, which is a rough approximation of a business' cash flow generation capability. This article explains the uses ...

Analysts use a variety of metrics to measure the effectiveness of sales activities. Companies use the data these metrics generate to evaluate profits, market share and other factors that determine a ...

Named after Nobel laureate William Sharpe (though he preferred to call it the reward-to-variability ratio), the Sharpe Ratio is a key tool for understanding historical returns of various investments, ...