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 ...

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 ...

In continuation of our series on “Accounting Basic for Startups”, this article will throw light on the calculation and interpretation of key financial ratios for evaluating the performance of a ...

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 ...

Understand what the current ratio measures, why it matters, and how to use it to assess and improve short-term liquidity.

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

Learn to evaluate investment managers with the up-market capture ratio, a key tool assessing performance against an index when markets rise. Master its calculation now.

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 ...

Here are some of the most common, and most useful, financial ratios you can calculate for your business, as well as links to more details about the most relevant ones. 1. Current ratio-- It's current ...

Using liquidity ratios can help investors find struggling businesses that may be inefficiently managed and ultimately help increase stock returns. I always found it frustrating in school when finance ...

Why should I care about my stock's Current Ratio or Inventory Turnover? What about its Cash Conversion Cycle or Cash Ratio? In the article below, I explain why using liquidity ratios can help find ...