The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...
Andrew Bloomenthal has 20+ years of editorial experience as a financial journalist and as a financial services marketing writer. David Kindness is a Certified Public Accountant (CPA) and an expert in ...
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Guide to Financial Ratios

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 ...
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 ...
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 ...
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 ...
For investors and business management alike, a few critical financial ratios help assess a company's financial health. One of the common ways of using these ratios is to compare them, ratio by ratio, ...
The expense ratio reflects the percentage of the fund's assets that are used to cover management costs and other administrative fees. Investors should make note of the expense ratio before purchasing ...