Discover how to calculate and understand key income statement ratios to evaluate company performance, including gross margin, ...

For investors and business management alike, a few critical financial ratios help assess a company's financial health. One of the common ways of using these ratios is to compare them, ratio by ratio, ...

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 ...

Chances are that if you’ve been around Federal Housing Administration lending for any amount of time you’ve heard the term, “compare ratio.” But what, exactly, does that term mean and why is it ...

Tracking financial performance over multiple years allows business leaders to steer their organization in the right direction. In particular, monitoring key sections of the balance sheet and income ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

The artificial intelligence (AI) industry is growing rapidly, and investors are looking for ways to gain exposure to this market. One way to do this is through ETFs that invest in AI. This article ...

Look for high profitability ratios to identify companies efficiently turning revenue into profits. Analyze margin and return ratios to assess how well a company manages its costs and assets. Compare ...

P/S ratio is calculated by dividing market cap by total revenue, guiding investment decisions. A low P/S ratio may indicate a stock is undervalued, useful for evaluating companies with no profit.

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

In situations where consumers must average ratio information, such as comparing the fuel efficiency of two cars using the ratio miles per gallon, they often incorrectly assume the mathematic equation ...