A common way that analysts and investors measure the performance of a company selling goods is by using financial ratios. One ratio that is useful for evaluating a company's effectiveness in utilizing ...

Financial ratios are an indicator of health for any business. They may seem esoteric, but to lenders and investors they tell the true story of a company's financial strength and ability to weather an ...

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 ...

Profitability ratios can help investors and analysts compare the financial efficiency of competing companies. People are often advised to do “the best they can with what they have,” and the same goes ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Investopedia / Jiaqi Zhou Capitalization ratios are financial ...

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...

Whether you’re a seasoned investor, or just starting out, one question that will probably be on your mind is whether an individual stock is cheap or expensive – a fact that can be revealed by its ...

Everyone wants to generate a healthy return on their investments. As the saying goes, you should “buy low and sell high.” But while you may think it’s a good idea to invest in a downward-trending ...

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 ...

PEG ratio adjusts P/E for growth, offering a clearer value assessment of stocks. To calculate PEG: Divide P/E by the expected EPS growth rate over time. Lower PEG suggests better stock value relative ...