Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

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 ...

Today, I cover AAII’s strategy that focuses on firms with a low price-to-sales ratio relative to their historical average. Because revenue-based measures like the price-to-sales ratio are used less ...

As of 2021, the New York Stock Exchange had approximately 2,500 listed companies. The fully-digital NASDAQ had over 3,700. With so many publicly-traded companies out there, investors need a quick, ...

Since stocks are riskier than cash and bonds, investors expect higher returns from equities. The price-earnings ratio, widely considered the price tag of the stock market, is a savvy metric to uncover ...

The risk/reward ratio or risk/return ratio is a commonly used metric in trading that compares the potential profit of a trade with the potential loss. That said, it’s the reward traders stand to make ...

Following a recipe is a great way to get started in the kitchen. However, once you’ve gotten the hang of combining ingredients, you can employ a few choice ratios that govern dozens of different ...

What is the price-to-earnings ratio? The price-to-earnings ratio, commonly known as the P/E ratio, is a stock valuation measure. It can help you assess a company's current share price relative to its ...