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 ...

One of the most effective ways to compare two businesses is to perform a ratio analysis on each company's financial statements. A ratio analysis looks at various numbers in the financial statements ...

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

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 ...

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 ...

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 ...

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 ...

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.

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Amy is an ACA and the CEO and founder of OnPoint Learning, a ...