Learn how to calculate the Tier 1 leverage ratio for banks, understand its significance, and assess capital adequacy ...
Hosted on MSN

Guide to Financial Ratios

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 ...
The founder of a new business is often not be a financial expert who understands all of the financial formulas necessary to manage all areas of running a business. Both startups and businesses that ...
Profits may look good, but it's cash that pays the bills. As a small business owner, do you track the liquidity ratios of your business? You should be calculating these ratios on at least a weekly ...
Discover how the cash asset ratio assesses company liquidity by dividing cash and marketable securities by current liabilities to measure short-term financial health.
Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...
Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how ...
It's important to emphasize that you need to account for all revenue, including operating revenue and non-operating revenue, such as investment income. Similarly, be sure to account for all expenses, ...
Evaluating stocks to buy and sell can be a tricky business, even with all of the data available at your fingertips. There are dozens of ratios and metrics that give clues to the financial health of a ...
Opinions expressed by Entrepreneur contributors are their own. Everything in business is relative. The numbers for your profits, sales, and net worth need to be compared with other components of your ...
Could your debt be reduced or forgiven? Take our financial relief quiz. The finance world has a number of metrics for measuring the overall health of a company or individual; one is the debt-to-asset ...
Opinions expressed by Entrepreneur contributors are their own. Being an entrepreneur for more than 30 years has taught me how important it is to track data about my business. But, I didn’t always take ...