Discover Costco's financial health through an in-depth balance sheet analysis, covering liquidity, efficiency, and risk ...
Each business generates financial reports at the end of each month, quarter and on an annual basis. Reports such as the income statement and balance sheet create a snapshot of how a business is ...
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 ...
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Guide to Financial Ratios

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...
A balance sheet is a versatile document that offers a snapshot of a company's or individual's finances at a given point in time. Businesses can use balance sheets to develop plans for the future and ...
A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...
The debt to asset ratio compares the total amount of debt a company holds to its assets. The ratio is used to determine to what degree a company relies on debt to finance its operations and is an ...
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 ...
The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...
Equity-to-asset ratio indicates how much of a company is owned versus debt-leveraged. To calculate, divide total equity by total assets; e.g., $4M/$5M = 80%. Compare ratio to industry to assess ...
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 ...
J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Marguerita is ...