Discover how the working ratio reveals a company's ability to cover operating costs from revenue, learn the calculation method, and understand its limitations.

GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...

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 ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

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 ...

A high inventory turnover ratio typically means your business is managing stock efficiently. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

Moving inventory out of your warehouse and into your customers' hands is a major objective of running a profitable business. The faster your inventory sells, the quicker you recoup your purchase costs ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in ...