A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

The debt to asset ratio compares the total amount of debt a company holds to its assets. The ratio is used to determine to what degree a company relies on debt to finance its operations and is an ...

A quick ratio below industry standard means that your company has a relatively lower liquidity position than its competitors on one of the three common liquidity ratios used by companies. The quick ...

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 ...

For income investors, it is important to know what proportion of a company's earnings are being distributed as dividends. That can be found using the payout ratio, as Axel Tracy explains in "Ratio ...

Inventory turnover is an indicator of a company’s revenue efficiency. It is the ratio defining how many times the inventory was sold and replaced in a given period of time. The inventory turnover ...

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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...