Financial ratios allow you to break down your company's financial statements and see how it is performing from different angles. Whether you are creating a proposal for new investors, seeking bank ...

Learn how to assess a company's financial strength using the EBITDA-to-interest coverage ratio, focusing on its ability to ...

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

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...

The inventory turnover ratio shows how efficiently a firm has used its inventory. This is important in a small business, where storing excess inventory can be an unwanted burden and cost. Calculate ...

How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how ...

The K-Ratio measures the consistency and quality of an investment's returns over time, providing more detail than traditional metrics like the Sharpe ratio. It evaluates risk-adjusted performance by ...

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 ...