What is the 'Short Interest Ratio'
The short interest ratio is a sentiment indicator that is derived by dividing the short interest by the average daily volume for a stock. This indicator is used by both fundamental and technical traders to identify the prevailing sentiment the market has for a specific stock.
Also known as the "short ratio".
BREAKING DOWN 'Short Interest Ratio'
This ratio provides a number that is used by investors to determine how long it will take short sellers, in days, to cover their entire positions if the price of a stock begins to rise. The short interest ratio can also be applied to entire exchanges to determine the sentiment of the market as a whole. If an exchange has a high short interest ratio of around five or greater, this can be taken as a bearish signal, and vice versa.

Short Interest
The quantity of stock shares that investors have sold short but ... 
Short Covering
Buying back borrowed securities in order to close an open short ... 
Weak Shorts
Traders or investors who hold a short position in a stock or ... 
Current Ratio
The current ratio is a liquidity ratio measuring a company's ... 
PutCall Ratio
A ratio of the trading volume of put options to call options. ... 
Ratio Analysis
A ratio analysis is a quantitative analysis of information contained ...

Trading Strategies
Short Interest: What It Tells Us
A stockâ€™s short interest is the total number of shares that investors have sold short but have yet to close. 
Investing
Short Selling Analytics
One issue with data on short selling is that it is not realtime in nature, unlike most other market data. Most major exchanges such as the New York Stock Exchange, Nasdaq, and the Toronto Stock ... 
Active Trading Fundamentals
The Short Squeeze Method
The short squeezed strategy can be risky  but also very rewarding  for those who master it. 
Active Trading Fundamentals
Short Selling: The Risks
Now that we've introduced short selling, let's make one thing clear: shorting is risky. Actually, we'll rephrase that. Shorting is very, very risky. It's not unlike running with ... 
Trading Strategies
Financial Ratios to Spot Companies Headed for Bankruptcy
Obtain information about specific financial ratios investors should monitor to get early warnings about companies potentially headed for bankruptcy. 
Investing Basics
Analyze Investments Quickly With Ratios
Make informed decisions about your investments with these easy equations. 
Investing Basics
Finding Solid BuyAndHold Stocks
Find out how to look at the big picture  even when the market's shortterm outlook is less than rosy. 
Investing
PEG Ratio
Learn more about how this ratio is used to determine a stock's value based on its earnings growth. 
Investing Basics
Do Your Investments Have ShortTerm Health?
If a company is strong enough to survive tough times, it is more likely to provide longterm value. 
Fundamental Analysis
5 Basic Financial Ratios And What They Reveal
Understanding financial ratios can help investors pick strong stocks and build wealth. Here are five to know.

How is the short interest of a company related to a short squeeze of a company?
Learn about the short interest and short squeeze, how to determine if a stock is a short squeeze candidate and how short ... Read Answer >> 
How do stock dividends affect the retained earnings account?
Understand the difference between financial ratio analysis and accounting ratio analysis. Learn why ratio analysis is important ... Read Answer >> 
How does days to cover a short position relate to a short squeeze?
Learn about days to cover and how it relates to a short squeeze. Smart traders can use this metric to help them avoid getting ... Read Answer >> 
What does a high times interest earned ratio signify with regard to a company's future?
Learn how the times interest earned ratio affects the perception of solvency of a company, and what a high ratio can mean ... Read Answer >> 
What is the difference between a short squeeze and short covering?
Learn about short covering and short squeezes, the difference them and what causes short squeezes. Read Answer >> 
What role does ratio analysis play in valuing a company?
Learn about the role of ratio analysis in determining company value, including some of the most common ratios used by modern ... Read Answer >>