To address the negative impact of including the inventory in the current ratio, the quick ratio is measured by dividing the current assets minus the inventory by the current liabilities. The quick ...

Discover how the cash asset ratio assesses company liquidity by dividing cash and marketable securities by current liabilities to measure short-term financial health.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Investment word of the day: There are several measures to understand whether a stock aligns with your investment or financial goals. One such metric is the price-to-book ratio or P/B ratio, which ...

The debt-to-equity ratio (D/E) is a financial leverage ratio that can be helpful when attempting to understand a company's economic health and if an investment is worthwhile or not. It is considered ...

The gold-silver ratio has long been considered an important metric to gauge the best time to invest in precious metals. Central banks are also buying up the commodity due to its diverse use in various ...

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 ...