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

Reviewed by Natalya Yashina Fact checked by Suzanne Kvilhaug Analyzing a company's financial ratios is one way of examining a company's balance sheet and income statement. Financial ratios track a ...

Discover how ratio analysis simplifies comparing company financial health. Learn key ratios like P/E and net profit margin to boost your investment decisions.

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...

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

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 ...

Efficiency level measures a company’s capability to transform available input into output, and is often considered an essential parameter for gauging its potential to generate profits. A company with ...

Financial ratios express relationships between financial statement items. Although they provide historical data, management can use ratios to identify internal strengths and weaknesses, and estimate ...

When it comes to investing, you've likely heard the arguments for putting your hard-earned money into exchange-traded funds (ETFs) or mutual funds to diversify your portfolio or to allocate more of ...

Personal finance ratios can help you understand where you're at and where you need to improve. Gauge your progress by tracking your emergency fund ratio, basic housing ratio, overall debt-to-income ...