The quick ratio, often referred to as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (cash + ...

The number of times a business sells and replaces its stock over a given time period is its inventory turnover ratio. The inventory turnover ratio, also sometimes called stock turns or inventory turns ...

Subtracting your expenses from your income gives you your bottom-line financial profit but doesn't tell you how you're doing in different areas and how you can improve your operations. You should ...

GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past ...

The compression ratio isn't just a number: it's one of the greatest determining factors in engine building. Compression ratio determines the type of fuel, how much boost, and has a significant ...

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 ...

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 ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for ...