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 ...

Learn how the long-term debt-to-total-assets ratio reveals a company's financial health by showing what portion of its assets is financed by long-term debt.

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 ...

Ratios: Show the relationship between two quantities, like the teacher to student ratio in a class. Purpose in business: Ratios help analyse a company's performance, liquidity, and overall health. Big ...

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 ...

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 ...

Beginning in 2011, the Affordable Care Act will require health insurance companies to spend a minimum percentage of the premiums they collect on health care services and quality improvement activities ...

When an absolute number doesn't adequately describe a scenario, proportions help fill the gap by describing the number with respect to a total. As an example, knowing that 30 orders were for a ...

Two quantities are said to be in direct proportion if they increase or decrease in the same ratio. If two amounts are directly proportional we can scale the quantities up by multiplying. 150 ml × 5 = ...