Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

Financial ratios are powerful tools when it comes to investing. Terms like "P/E" and "PEG" get thrown around a lot, but many investors don't know what they mean or how they're used. While they may ...

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 ...

Financial ratios help to provide an economic overview of a business. Financial ratios are parameters that owners of a company need to check along with current or potential investors who can understand ...

Opinions expressed by Entrepreneur contributors are their own. Being an entrepreneur for more than 30 years has taught me how important it is to track data about my business. But, I didn’t always take ...

Reviewed by Natalya Yashina Fact checked by Suzanne Kvilhaug Analyzing a company's financial ratios is one way of examining a company's balance sheet and income statement. Financial ratios track a ...

Explore how the total debt-to-capitalization ratio helps measure a company's leverage. Learn the formula, implications, and ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

Financial statement analysis is useful in anticipation of future conditions and planning for actions that will improve the firm's future performance. Financial ratios are designed to help you evaluate ...

Financial matters need to be handled carefully for an organization to perform well. Your organization can use ratio analysis to evaluate its financial status and gauge its performance. Ratio analysis ...