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 ...

The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Financial ratios are an indicator of health for any business. They may seem esoteric, but to lenders and investors they tell the true story of a company's financial strength and ability to weather an ...

Financial analysis is an aspect of the overall business finance function that involves examining historical data to gain information about the current and future financial health of a company.

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 ...

Return-on-equity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The “advanced ...

In this article, we will take a look at the 12 most important financial ratios to analyze a company. If you want to skip our detailed analysis, you can go directly to 5 Most Important Financial Ratios ...

Evaluating stocks to buy and sell can be a tricky business, even with all of the data available at your fingertips. There are dozens of ratios and metrics that give clues to the financial health of a ...

Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a writer and editor. Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

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 ...