The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

The debt-to-equity (D/E) ratio is a financial metric that measures a company's financial leverage by comparing its total debt to shareholders' equity. It indicates how much debt a company uses to ...

A PEG ratio is a tool used in fundamental stock analysis by investors to assess a share’s value. It measures a stock’s price-to-earnings ratio against the anticipated earnings growth for the ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

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Analysts use a variety of metrics to measure the effectiveness of sales activities. Companies use the data these metrics generate to evaluate profits, market share and other factors that determine a ...

Interest coverage ratio is a measure that assesses a company's ability to manage the cost of its debt. Both investors and bank lenders use the interest coverage ratio to assess a company's financial ...

The Sharpe ratio is a measurement of the risk-adjusted returns of an investment or an investment manager over time. The Sharpe ratio was developed by American economist and Noble laureate William F.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

A business must possess enough funds to pay current financial obligations at all times to ensure continuity of business operations. Fixed-assets-to-net-worth ratio is an accounting tool that shows you ...

The tangible common equity ratio is the ratio of a company’s tangible equity to its tangible assets. It doesn’t follow generally accepted accounting principles, or GAAP, and hence the method of ...