When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

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 ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

A high inventory turnover ratio typically means your business is managing stock efficiently. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

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 ...

What is a good return for your portfolio? If a bond portfolio generated a 4% return over the past year, it could be considered a pretty decent return. However, investors who prioritized high-growth ...

Annualized total return gives the yearly return of a fund calculated to demonstrate the rate of return necessary to achieve 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 ...

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 ...

Debt-service coverage ratio (DSCR) looks at a company's cash flow versus its debts. The ratio is used when gauging a business's ability to pay off current loans and take on future financing. If your ...

The current ratio is calculated by dividing a company’s current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency.