The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Because diesel vehicles do not use spark plugs, they must rely on higher compression ratios to ignite the diesel fuel without ...

Discover how ratio analysis simplifies comparing company financial health. Learn key ratios like P/E and net profit margin to boost your investment decisions.

Efficiency level measures a company’s capability to transform available input into output, and is often considered an essential parameter for gauging its potential to generate profits. A company with ...

Financial ratios express relationships between financial statement items. Although they provide historical data, management can use ratios to identify internal strengths and weaknesses, and estimate ...

There are dozens of financial ratios and their meanings help business owners evaluate the financial health of a company. Financial ratios can be broken into six key areas of analysis: liquidity, ...

The payout ratio is one of the simplest ways to assess whether a dividend can sustain itself over time. It shows how much of ...

Before you jump into any investment, it’s important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn’t ...

Dividend payout ratios can be one of the most important metrics when deciding whether to invest in a company. It indicates how much of a company's earnings it pays shareholders dividends. By ...