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 ...

A company's inventory can consist of the raw materials needed to create finished products, the actual finished products, components like overhead and labor, and more incidental items like office ...

When you want to get an idea of a company's financial condition, ratio analysis is one of the tools of the trade. In the following article, you'll learn about two useful balance sheet ratios: the debt ...

To calculate your debt-to-income ratio, add up your monthly debt payments and divide this figure by your gross monthly income. While every lender and product will have different ranges, a DTI of 50 ...

When it's time for a new credit card or if you're financing a large purchase, you need to know your debt-to-income ratio.

The effective tax rate is a ratio between your provisions, or income tax expense, and your pre-tax income. You may use the calculation for any application, either for your own personal income, or the ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...

If you seek regular income, you know that dividends are a must-have. Likewise, dividend growth rates are a key indicator of whether a company is financially healthy enough to keep paying them. You can ...

The dividend payout ratio is a way to measure the relative amount of dividends paid to a company’s shareholders. The ratio is calculated by adding up the dividends paid per share over the past four ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

The compression ratio isn't just a number: it's one of the greatest determining factors in engine building. Compression ratio determines the type of fuel, how much boost, and has a significant ...