The current ratio is calculated by dividing a company’s current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency.

Your tax ratio – also called a tax rate – determines the amount of personal income tax you pay each year. Information you give your employer determines how much comes out each pay period. Information ...

When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

Learn how to calculate the Tier 1 leverage ratio for banks, understand its significance, and assess capital adequacy ...

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 ...

The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable and ...

Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

A common way that analysts and investors measure the performance of a company selling goods is by using financial ratios. One ratio that is useful for evaluating a company's effectiveness in utilizing ...

Last week we explained how to break apart a detailed quote. Now we'll tackle the investment calculations for earnings per share and the price/earnings ratio. [caption ...

Discover what Information Ratio in mutual funds means, how it is calculated, its importance, examples, and limitations. A ...

The compression ratio isn't just a number: it's one of the greatest determining factors in engine building. Compression ratio determines the type of fuel, how much boost, and has a significant ...