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 ...

Your tax ratio – also called a tax rate – determines the amount of personal income tax you pay each year. Information you give your employer determines how much comes out each pay period. Information ...

Whether you’re a seasoned investor, or just starting out, one question that will probably be on your mind is whether an individual stock is cheap or expensive – a fact that can be revealed by its ...

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 ...

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 ...

Learn how the reserves-to-production ratio estimates the lifespan of natural resources. Discover its role in predicting resource availability and influencing investment.

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 ...

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 ...

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 ...

Investing in stocks involves looking at many different numbers and ratios to understand a company’s value and future potential. One of the most useful tools for this is the PEG ratio. Unlike simpler ...

Beginner investors find it complex to learn about the stock market and invest based on the gained knowledge and end up investing based on hear-say and intuition. This becomes the main reason for ...