Financial ratios are calculations developed using data from a company's financial statements. Managers, investors and lenders analyze financial ratios for indications of a company's performance and ...

Return on investment ratio analysis determines a company's efficiency in investments. Simply put, it shows how profitable an investment will be. Several ratios within this category are frequently ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

The price-to-earnings ratio (P/E) is among the most important and commonly used valuation metrics in the fundamental analysis of stocks. It is also referred to as the price multiple, or the earnings ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Gordon Scott has been an active investor and ...

One way to look at dividend investing is that it's a simpler path to cash flow than real estate or other means and takes less time to pull off. After you research dividend stocks and invest in a few ...

If you are confused by personal finance terms, jargon and calculations, here’s a series to simplify and deconstruct these for ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...