Investors and lenders use financial ratios to gauge the strength and measure the performance of corporate businesses. Although privately owned small businesses do not engage in the full range of ...
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Guide to Financial Ratios

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 ...
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 ...
A business must possess enough funds to pay current financial obligations at all times to ensure continuity of business operations. Fixed-assets-to-net-worth ratio is an accounting tool that shows you ...
Opinions expressed by Entrepreneur contributors are their own. Everything in business is relative. The numbers for your profits, sales, and net worth need to be compared with other components of your ...
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 ...
Today, I cover AAII’s strategy that focuses on firms with a low price-to-sales ratio relative to their historical average. Because revenue-based measures like the price-to-sales ratio are used less ...
Often, the go-to metric for investors to judge how "expensive" a stock is compared to its peers is the price-to-earnings ratio. But what if a company is investing all of its profits into growing the ...
Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Khadija Khartit is a strategy, investment, and funding expert, and an ...
When you’re buying a property or remortgaging, your loan to value ratio is very important. Loan to value – or LTV for short – has a major effect on the interest rate you can access on your mortgage.