When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

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

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in ...

Whether you’re a seasoned investor, or just starting out, one question that will probably be on your mind is whether an individual stock is cheap or expensive – a fact that can be revealed by its ...

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 ...

Investing in stocks involves looking at many different numbers and ratios to understand a company’s value and future potential. One of the most useful tools for this is the PEG ratio. Unlike simpler ...

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 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...

The Market-to-Book (M/B) ratio is an essential metric used to evaluate whether a company’s stock is trading above or below the value of its assets. By comparing market value with the book value, this ...

Also known as liquidity ratios, liquid ratios measure how well a firm can use its short-term assets to meet its short-term debt obligations. Business managers can use several different liquidity ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...