If you are an investor, the current ratio is a measure you’ll likely want to use to analyze the companies in which you are considering investing. The current ratio is a liquidity measure. It ...

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 ...

The dividend payout ratio is a way to measure the relative amount of dividends paid to a company’s shareholders. The ratio is calculated by adding up the dividends paid per share over the past four ...

P/E ratio compares stock price to earnings, signaling if a stock is valued fairly. Use P/E to compare similar companies, aiding in spotting overpriced or underpriced stocks. Check other financial ...

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 how ...

Calculate P/B ratio by dividing stock price by book value per share. A lower P/B may signal an undervalued stock, but verify with other metrics. Use P/B for tangible asset companies; it’s less valid ...