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 ...

If you are an investor, the current ratio is a measure you’ll likely want to use to analyze the companies in which you are considering investing. The current ratio is a liquidity measure. It ...

The stock turnover ratio is another term for inventory turnover ratio. A stock turnover ratio measures the speed with which your inventory sells after you acquire it. Put another way, a stock turnover ...

It’s essential for investors of all levels to navigate the complexities of financial ratios. Today, we unravel the ‘Current Ratio,’ a key metric used to assess a company’s financial health. The ...

A PEG ratio is a tool used in fundamental stock analysis by investors to assess a share’s value. It measures a stock’s price-to-earnings ratio against the anticipated earnings growth for the ...

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 Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

Use the Sharpe ratio to evaluate an asset's risk vs. return Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple ...

The EBITDA Interest Coverage Ratio is a financial metric that measures a company’s ability to meet its interest obligations using its earnings before interest, taxes, depreciation, and amortization ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. David Kindness is a Certified Public Accountant (CPA) and an expert in the ...

Human resource departments have a number of ways to analyze and forecast external hiring demand. The ratio analysis formula used in HR is a forecasting tool commonly used to predict annual external ...