How to Calculate Financial Ratios of Performance. Financial ratios allow you to break down your company's financial statements and see how it is performing from different angles. Whether you are ...

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

In the following article, you'll learn about two useful balance sheet ratios: the debt ratio and the equity multiplier, and you'll learn the relationship between the two and how to calculate one ...

Alok Patnia writes about how to calculate the key financial ratios to evaluate your startups performance.

Calculate your inventory turnover rate to see how efficient your business is. In general, you want to maintain a high ratio -- meaning that you have sold out your merchandise numerous times.

How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating ...

The ratio is used mainly for valuing publicly traded companies since market prices, as well as their assets and liabilities, are publicly available. How Do You Calculate Price-to-Book Ratio?

Debt-to-income ratio explained, plus how to calculate yours Your debt-to-income ratio is an important factor lenders look at when approving you for new credit.

Discover how the CAPE ratio evaluates market value with historical earnings data. Learn its definition, formula, uses, and ...

Knowing about the tier 1 leverage ration, how to calculate it and what it indicates about a bank is important for determining capital adequacy.