Financial ratios allow you to break down your company's financial statements and see how it is performing from different angles. Whether you are creating a proposal for new investors, seeking bank ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

In continuation of our series on “Accounting Basic for Startups”, this article will throw light on the calculation and interpretation of key financial ratios for evaluating the performance of a ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Katharine Beer is a writer, editor, and archivist based in New York. She has ...

The value-to-revenue ratio is one of the measures of a company's financial performance, especially relative to other companies in the same industry. Also called enterprise value-to-revenue ratio, this ...

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and ...

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 ...

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Accounting profit, calculated as revenue minus all costs, directly impacts stock prices. Economic profit includes opportunity cost, providing deeper insight into resource utilization. Cash flow, often ...