Financial ratios allow you to break down your company's financial statements and see how it is performing from different angles. Whether you are creating a proposal for new investors, seeking bank ...

Last month we looked at the value of understanding ratios when you go to the bank for a loan. Without going into too much detail here, here's a look at some of the most common ratios used by financial ...

In continuation of our series on “Accounting Basic for Startups”, this article will throw light on the calculation and interpretation of key financial ratios for evaluating the performance of a ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

The inventory turnover ratio shows how efficiently a firm has used its inventory. This is important in a small business, where storing excess inventory can be an unwanted burden and cost. Calculate ...

The K-Ratio measures the consistency and quality of an investment's returns over time, providing more detail than traditional metrics like the Sharpe ratio. It evaluates risk-adjusted performance by ...

Lorraine Roberte is an insurance writer for Investopedia. As a personal finance writer, her expertise includes money management and insurance-related topics. She has written hundreds of reviews of ...

One of the many variables lenders use when deciding whether or not to loan you money is your debt-to-income ratio or DTI. Your DTI reveals how much debt you owe compared to the income you earn. Higher ...