A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

The dividend payout ratio is among the most crucial dividend metrics for new investors to master. Consider learning how to calculate dividend payout ratio to learn the dividend payment measure ...

One of the many metrics that investors use when evaluating a company is return on assets. The greater the return a company can achieve using a given amount of capital, the higher the valuation that ...

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

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 quick ratio below industry standard means that your company has a relatively lower liquidity position than its competitors on one of the three common liquidity ratios used by companies. The quick ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...