The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Profitability ratios can help investors and analysts compare the financial efficiency of competing companies. People are often advised to do “the best they can with what they have,” and the same goes ...

The current ratio is calculated by dividing a company’s current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency.

There are thousands of schemes available today to invest in mutual funds and many of investors unable to decide which fund is ...

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 ...

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 ...

The asset turnover ratio compares a company's total average assets to its total sales. The ratio helps investors determine how efficiently a company is using its assets to generate sales. The success ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

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 ...

All entities have to balance their financial leverage with their working capital and cash reserves; otherwise they run the chance of becoming insolvent. Given the complexity of the U.S. financial ...

Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.