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 ...

Ratio When comparing two quantities (of the same kind), sometimes it is necessary to find out the relationship that one quantity bears to another, this comparison is made by considering what multiple, ...

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 ...

Analyzing financial information is a critical part of being a business owner. One of the ways to monitor the financial performance of your company is through ratios. Using ratios is a quick way for ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

A ratio compares two or more quantities by using parts of a whole. In this bracelet, there are 2 parts red compared to 3 parts blue. The ratio of red beads to blue beads is 2 : 3. This is said aloud ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Suzanne is a content marketer, writer, and ...