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 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 ...

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 ...

An industry or financial ratio compares sets of financial or other data within a company to measure its operating performance and financial condition. A company's management uses ratios to make key ...

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 ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

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 ...

Your debt-to-income ratio or DTI represents the amount of your income that goes to debt repayment each month. So why does that matter? For one thing, debt to income can be an important factor in ...

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 ...

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