Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using ...

Calculate your inventory turnover rate to see how efficient your business is. In general, you want to maintain a high ratio -- meaning that you have sold out your merchandise numerous times.

How to Calculate a Return-on-Sales Ratio With Revenue & Expenses. The return-on-sales ratio measures how much of your revenue results in profit for your company rather than going toward paying ...

Alok Patnia writes about how to calculate the key financial ratios to evaluate your startups performance.

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability ...

The dividend payout ratio can be a helpful metric for comparing dividend stocks. This ratio represents the amount of net income that a company pays out to shareholders in the form of dividends ...

How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using ...