When you want to get an idea of a company's financial condition, ratio analysis is one of the tools of the trade. In the following article, you'll learn about two useful balance sheet ratios: the debt ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

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

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for ...

It's important to emphasize that you need to account for all revenue, including operating revenue and non-operating revenue, such as investment income. Similarly, be sure to account for all expenses, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Hans Daniel Jasperson has over a decade of ...

An industry or financial ratio compares sets of financial or other data within a company to measure its operating performance and financial condition. A company's management uses ratios to make key ...

The dividend payout ratio formula is simple and easy to use in your search for the top dividend stocks. To find the figure, divide the company's dividend payment or distribution amount by the earnings ...

Successful businesses depend on diligent managers to analyze key factors that influence profitability and make changes to the business based on their analyses. Managers use a variety of statistical ...

If you’re a business owner looking for a loan, your lender will be looking for your solvency ratio. Of course, if you have a startup and are new to running a business, you may not know what a solvency ...