The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.

Discover how ratio analysis simplifies comparing company financial health. Learn key ratios like P/E and net profit margin to boost your investment decisions.

Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how ...

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

Chances are that if you’ve been around Federal Housing Administration lending for any amount of time you’ve heard the term, “compare ratio.” But what, exactly, does that term mean and why is it ...

Tracking financial performance over multiple years allows business leaders to steer their organization in the right direction. In particular, monitoring key sections of the balance sheet and income ...

Why do "fat chance" and "slim chance" mean the same thing?Regardless, many mortgage bankers feel that they have more of a chance of meeting the new net worth requirements as set forth by HUD. That is ...

P/S ratio is calculated by dividing market cap by total revenue, guiding investment decisions. A low P/S ratio may indicate a stock is undervalued, useful for evaluating companies with no profit.

Question: What are “leverage ratios” and how can they be used to better manage a business? Answer: (Part 2 of 2) To be useful, financial ratios most be compared to some standard or norm. One such ...

In situations where consumers must average ratio information, such as comparing the fuel efficiency of two cars using the ratio miles per gallon, they often incorrectly assume the mathematic equation ...

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...