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 ...

Overview: The market cap to sales ratio shows how much investors pay in share price for each unit of sales a stock ...

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

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 ...

On paper, it’s about as un-sexy a subject as you can imagine. Nevertheless, your business’s debt coverage ratios are a critical component of any underwriting process. Even if your credit history is ...

The forward price-to-earnings ratio (P/E) is a valuation metric that measures and compares a company's earnings using ...

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 ...

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 ...