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 ...
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 ...
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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 ...
An industry or financial ratio compares sets of financial or other data within a company to measure its operating performance and financial condition. A company's management uses ratios to make key ...
Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...
Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax expert. She ...
Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. The debt-to-equity (D/E) ratio is a calculation ...
Dividing into a given ratio. You can use bar models to divide amounts in a given ratio. For example, Isabel and Geraint share their savings of £96 in the ratio 5 to 3. How much money does each person ...
GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...