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 ...

The total-debt-to-total-assets ratio is one of many financial metrics used to measure a company’s performance. In this case, ...

The return on assets (ROA) ratio is a financial indicator that provides insight into how efficiently a company is using its ...

Fixed assets and working capital combined make up the major resources used by businesses to generate income. The ability of a company to use these resources efficiently directly affects profitability.

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 ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

You might feel a little overwhelmed by the many facts and figures used to evaluate a corporation's financial condition. One of the figures that you need to calculate and understand is the return on ...

Mutual funds' trading volume, reflected in the turnover ratio, affects their fees. High turnover ratios in actively managed funds can erode returns due to trading costs. Low turnover suggests a fund ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Chip Stapleton is a Series 7 and Series 66 ...

Asset turnover ratio calculates efficiency of asset use to generate sales; formula: Total Sales ÷ Average Assets. Higher asset turnover indicates better capital use and operational efficiency relative ...