Reviewed by Andy Smith The current ratio is a metric used by the finance industry to assess a company's short-term liquidity.

Here, solvent means “able to pay one’s debts,” so when it comes to the acid test ratio, solvency is a good thing, and results of 1 or higher indicate short-term solvency. To calculate a ...

You can calculate your debt-to-income ratio by dividing your total recurring monthly debt by your gross monthly income. Why do you need to know this number? Because lenders use it as a measure of ...

Many brokerage firms automatically calculate your portfolio's Sharpe ratio. However, investors should still know what goes into this metric. Knowing what constitutes the Sharpe ratio can help ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating ...

There are two ways to calculate the p/e ratio. They are two different ways to look at the same thing, so there is no difference in the result. The first is perhaps more intuitive. Here ...

An M/B ratio below 1 suggests that a company’s ... Research and Development (R&D) Expenses: What Is It, Calculation & Importance What are Research and Development (R&D) Expenses?

When it comes to owning a home, understanding the Loan-to-Value (LTV) ratio is essential. This number can influence not only ...

Let’s calculate Apple’s current ratio as of March 27th, 2021. To calculate the current ratio, we’ll include all current assets in the numerator. These figures can be found on Apple’s ...