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 ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

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 ...

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 ...

What is the price-to-earnings ratio? The price-to-earnings ratio, commonly known as the P/E ratio, is a stock valuation measure. It can help you assess a company's current share price relative to its ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

The stock turnover ratio is another term for inventory turnover ratio. A stock turnover ratio measures the speed with which your inventory sells after you acquire it. Put another way, a stock turnover ...

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Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.