The PEG ratio is a metric used to analyze growth stocks. It assesses a stock’s price to its earnings level and growth rate of those earnings per share, in evaluating the appeal of the valuation. The ...

Debt-to-income ratio shows how your debt stacks up against your income. Lenders use DTI to assess your ability to repay a loan. Many, or all, of the products featured on this page are from our ...

Learn how equity/bond, credit, gold/equity and crypto ratios turn market noise into clear risk‑on vs. risk‑off signals-and ...

Understanding the compa ratio is essential for evaluating employee compensation. This metric helps ensure salaries are competitive and fair within the market. The MarketWatch Guides team has provided ...

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 ...

There is more than 1 way to skin a cat, or so the saying goes. And there is more than 1 way to figure out how much a company is worth to investors. One yardstick is the price-earnings ratio, aka the P ...

Liquidity ratios assess if a company can cover short-term debts with available assets. Key ratios include cash, quick, current, and operating cash flow ratios. A liquidity ratio over 1 suggests a ...

The retention ratio measures the percentage of a company’s earnings that are reinvested rather than distributed as dividends. Investors use the retention ratio to assess how much profit a business ...

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 ...

Everyone wants to generate a healthy return on their investments. As the saying goes, you should “buy low and sell high.” But while you may think it’s a good idea to invest in a downward-trending ...