Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

As such, it is seen as an indicator of how efficiently a company's management is deploying the economic resources it ...

Managers and investors both use financial ratios to evaluate business performance. Financial ratios convert financial information into a standardized format that makes it easy for users to evaluate ...

An industry or financial ratio compares sets of financial or other data within a company to measure its operating performance and financial condition. A company's management uses ratios to make key ...

Financial ratios are useful tools for investors to better analyze financial results and trends over time. These ratios can also be used to provide key indicators of organizational performance, making ...

Here are some of the most common, and most useful, financial ratios you can calculate for your business, as well as links to more details about the most relevant ones. 1. Current ratio-- It's current ...

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 ...