Financial Ratios

Investors can hold several assets as a part of their portfolio. Usually, these assets come from various classes. Investors invest in those classes to ensure they can achieve diversification in their portfolios. However, achieving a diversified portfolio isn’t the only crucial factor when choosing assets. Investors also consider the risks and returns associated with their …

What is Annualized Total Return? And How to Calculate it? Read More »

Financial ratios are numerical values that calculate the relative magnitude of one financial figure to another. Usually, it looks at the comparison between two financial items. These items may relate to the balance sheet or income statement. In some instances, they may also consider the statement of cash flow figures. However, these ratios reveal more …

What is the Advertising to Sales Ratio? And How to Calculate It? Read More »

Accounting ratios compare the relative magnitude of a financial figure to another. These ratios help stakeholders understand a company’s operations better. In most circumstances, accounting ratios require metrics from financial statements. However, these metrics may not provide crucial information on their own. Therefore, by putting them through these ratios, stakeholders can obtain better insights into …

How to Calculate Activity Ratios? Read More »

Accounting ratios are metrics that allow stakeholders to calculate the relative magnitude of two selected values. These values come from a company’s financial statements, usually the balance sheet and income statement. Usually, stakeholders use various accounting ratios, which fall under several categories. For example, these may include liquidity, profitability, leverage, etc. In most circumstances, accounting …

What Is a Good Acid Test Ratio? Here Is What You Should Know Read More »

Statistics have extensive implications in every field and industry, from pharmaceuticals to sports. On one side, the probability is used to find the chances of the desired outcome in sports; the statistical analysis guides the data collection and analysis in a census. Similarly, the financial management of any business entity is incomplete without statistical analysis. …

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