When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

A high debt-to-income ratio is a common reason lenders deny applications. The good news is that you can lower your DTI.

Your tax ratio – also called a tax rate – determines the amount of personal income tax you pay each year. Information you give your employer determines how much comes out each pay period. Information ...

A debt-to-equity ratio is a way to measure a company's financial position. What does the ratio tell us? How do investors use ...

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 ...

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in ...

The Market-to-Book (M/B) ratio is an essential metric used to evaluate whether a company’s stock is trading above or below the value of its assets. By comparing market value with the book value, this ...

Also known as liquidity ratios, liquid ratios measure how well a firm can use its short-term assets to meet its short-term debt obligations. Business managers can use several different liquidity ...

Learn how the reserves-to-production ratio estimates the lifespan of natural resources. Discover its role in predicting resource availability and influencing investment.

Investing in stocks involves looking at many different numbers and ratios to understand a company’s value and future potential. One of the most useful tools for this is the PEG ratio. Unlike simpler ...