Financial ratios are an indicator of health for any business. They may seem esoteric, but to lenders and investors they tell the true story of a company's financial strength and ability to weather an ...

Ratio analysis assesses company performance using financial ratios. ITW improved profit margins and FCF through strategic alignment. ITW's stock outperformed S&P 500 over a decade, showing strategic ...

Human resource departments have a number of ways to analyze and forecast external hiring demand. The ratio analysis formula used in HR is a forecasting tool commonly used to predict annual external ...

The Equity to Asset Ratio (EAR) is a financial metric that measures the proportion of a company’s assets that are financed by its shareholders’ equity. This ratio gives investors and analysts an ...

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 ...

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 how ...

The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.

What is a good return for your portfolio? If a bond portfolio generated a 4% return over the past year, it could be considered a pretty decent return. However, investors who prioritized high-growth ...