The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Dividend payout ratios can be one of the most important metrics when deciding whether to invest in a company. It indicates how much of a company's earnings it pays shareholders dividends. By ...

Efficiency level measures a company’s capability to transform available input into output, and is often considered an essential parameter for gauging its potential to generate profits. A company with ...

Financial ratios express relationships between financial statement items. Although they provide historical data, management can use ratios to identify internal strengths and weaknesses, and estimate ...

Image Credit: Philip Lange/Shutterstock. Some cars just look “right.” Balanced, elegant, and timeless. That visual harmony often stems from the golden ratio, a mathematical proportion (approximately 1 ...

There are dozens of financial ratios and their meanings help business owners evaluate the financial health of a company. Financial ratios can be broken into six key areas of analysis: liquidity, ...

Discover how ratio analysis simplifies comparing company financial health. Learn key ratios like P/E and net profit margin to boost your investment decisions.

Beginning in 2011, the Affordable Care Act will require health insurance companies to spend a minimum percentage of the premiums they collect on health care services and quality improvement activities ...

A ratio compares two or more quantities by using parts of a whole. In this bracelet, there are 2 parts red compared to 3 parts blue. The ratio of red beads to blue beads is 2 : 3. This is said aloud ...