Effective planning and financial management are the keys to running a financially successful small business. Ratio analysis is critical for helping you understand financial statements, for identifying ...

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...

The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.

A ratio analysis compares a company's financial data for the purpose of identifying a current profit trend or providing context to make a business decision. An accountant or financial analyst ...

When you’re evaluating a potential investment, you likely look at profitability and growth, but there is one fundamental concept you must master first: liquidity. Just as a household needs enough cash ...

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 ...

Current ratio measures short-term asset coverage of liabilities, guiding investment decisions. Compare a company's current ratio across years and versus peers to assess financial health. Seasonal ...

There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

Analyze investments quickly with ratios. Stock picking can seem confusing, but using fundamental analysis and ratios can help you find long-term investing opportunities. Ratio analysis isn't only for ...

When a business offers credit to a favorite customer, loyalty and the desire to make the sale often play roles in the move. But one thing the financial crisis taught American businesses is that it’s ...

A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy. FASB describes liquidity as reflecting “an asset’s or liability’s nearness ...