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 ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

When you want to get an idea of a company's financial condition, ratio analysis is one of the tools of the trade. In the following article, you'll learn about two useful balance sheet ratios: the debt ...

Revise how to work out equivalent ratios and simplify ratios by dividing both sides by the highest common factor. Test yourself with practice questions and a game. NEW: Ratio and fractions, and ...

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 the Sharpe Ratio in Excel for insightful investment analysis. Our guide will help you assess risk versus ...

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How well can current assets cover current liabilities? Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and the ...