The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Image Credit: Philip Lange/Shutterstock. Some cars just look “right.” Balanced, elegant, and timeless. That visual harmony often stems from the golden ratio, a mathematical proportion (approximately 1 ...

Dividend payout ratios can be one of the most important metrics when deciding whether to invest in a company. It indicates how much of a company's earnings it pays shareholders dividends. By ...

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

There are dozens of financial ratios and their meanings help business owners evaluate the financial health of a company. Financial ratios can be broken into six key areas of analysis: liquidity, ...

Financial ratios express relationships between financial statement items. Although they provide historical data, management can use ratios to identify internal strengths and weaknesses, and estimate ...

Efficiency level measures a company’s capability to transform available input into output, and is often considered an essential parameter for gauging its potential to generate profits. A company with ...

Beginning in 2011, the Affordable Care Act will require health insurance companies to spend a minimum percentage of the premiums they collect on health care services and quality improvement activities ...

A ratio compares two or more quantities by using parts of a whole. In this bracelet, there are 2 parts red compared to 3 parts blue. The ratio of red beads to blue beads is 2 : 3. This is said aloud ...