The profit margin ratio measures the portion of every dollar that you earn that you keep as profit. The profit margin ratio is reported in the form X:1, where X is the profit per dollar. For example, ...

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

Learn about the reserve ratio, its role in banking and monetary policy, and how it’s calculated to influence lending and economic stability.

Recent data shows homes sold for 99.4% of asking price, indicating strong buyer leverage. The sale-to-list ratio, calculated by dividing selling price by asking price, gauges negotiation power. A ...

To calculate your debt-to-income ratio, add up your monthly debt payments and divide this figure by your gross monthly income. While every lender and product will have different ranges, a DTI of 50 ...

The contribution margin reflects the amount of revenue that remains after variable expenses are deducted from the overall sales amount. The contribution margin ratio reflects the contribution margin's ...

The dividend payout ratio is a way to measure the relative amount of dividends paid to a company’s shareholders. The ratio is calculated by adding up the dividends paid per share over the past four ...

Rob is a Contributing Editor for Forbes Advisor, host of the Financial Freedom Show, and the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom. He ...