Smart investors use financial ratios to analyze a company's financial performance before making an investment. Financial ratios reveal how a company is financed, how it uses its resources, its ability ...

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 one of two standardized financial reports produced on a regular basis. It provides information used by professionals in the financial community to analyze company performance and ...

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 ...

When you’re evaluating a potential investment, you likely look at profitability and growth, but there is one fundamental concept you must master first: liquidity. Just as a household needs enough cash ...

Discover the key financial metrics investors use, like the quick ratio, ROA, and debt-to-capitalization, to evaluate the ...

Understanding working capital as a small business owner can help you grow your business or take advantage of bigger ...

Current liabilities include short-term financial obligations due within a year. Investors should monitor companies' current ratios to assess financial strength. A current ratio above 1 indicates a ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam ...

Managing a business without a clear handle on your financial data is like flying blind. You may be moving quickly, but you can’t see if you're on course or heading for turbulence. Over the years, in ...

Liquidity ratios assess if a company can cover short-term debts with available assets. Key ratios include cash, quick, current, and operating cash flow ratios. A liquidity ratio over 1 suggests a ...