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

When you want to get an idea of a company's financial condition, ratio analysis is one of the tools of the trade. In the following article, you'll learn about two useful balance sheet ratios: the debt ...

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 ...

Profits may look good, but it's cash that pays the bills. As a small business owner, do you track the liquidity ratios of your business? You should be calculating these ratios on at least a weekly ...

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 ...

Discover how the Investment Income Ratio evaluates insurance profitability through net income vs. premiums. Learn its benefits and calculation methods.

Mutual funds' trading volume, reflected in the turnover ratio, affects their fees. High turnover ratios in actively managed funds can erode returns due to trading costs. Low turnover suggests a fund ...

Your tax ratio – also called a tax rate – determines the amount of personal income tax you pay each year. Information you give your employer determines how much comes out each pay period. Information ...

GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...

Companies prefer raising funds through debt capital as it is cost-effective. In this way, they can save themselves from paying high-interest rates if they raise through financial institutions.