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 ...

The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Human resource departments have a number of ways to analyze and forecast external hiring demand. The ratio analysis formula used in HR is a forecasting tool commonly used to predict annual external ...

Learn how the reserves-to-production ratio estimates the lifespan of natural resources. Discover its role in predicting ...

Ratio analysis assesses company performance using financial ratios. ITW improved profit margins and FCF through strategic alignment. ITW's stock outperformed S&P 500 over a decade, showing strategic ...

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 ...

Cost benefit analysis is a strategy used by businesses and individuals to weigh the potential outcome of an action in order to make a decision. One of the main ways people make decisions is by using a ...

Fundamental analysis is a method used to evaluate the intrinsic value of a financial asset, such as a stock, bond, or currency. This analysis involves examining various economic, financial, and ...

How well can current assets cover current liabilities? Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and the ...