Sound financial management is necessary in a small business -- to make the most of your assets, you need to properly account for them. The quick ratio is a simple financial ratio that can help you to ...

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

Companies use a number of analytical tools and ratios to determine if the numbers shown on their financial statements indicate financial health and strong performance. They also use these to identify ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Thomas J. Brock is a CFA and CPA with more than 20 years of ...

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 ...

Debt-to-capital ratio is the proportion of a company's total capital that is debt. The ratio is a useful measure of how much a company relies on debt (rather than equity) to finance its operations—and ...