Using Liquidity Ratios
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Learn more about these quick and intuitive ratios you can use to analyze a stock's liquidity.
How is a company being run? Is it generating profits? The answer to these questions lies in analyzing the profitability ratios of a company.
Learn more about this economic theory that incorporates government intervention in the marketplace.
Learn more about how market cap represents the "price tag" of a company.
The easier it is to convert the asset, the more liquid the asset is considered.
The Debt-Service Coverage Ratio (DSCR) is a simple way to analyze whether a company can adequately manage its borrowing costs. The ratio helps banks evaluate the credit worthiness of an organization that is applying for a loan. It also tips off investors to companies carrying a debt level that could be destructive.
Operating leverage tells investors about the relationship between a company's fixed and variable costs. The higher a company's fixed costs in relation to its variable costs, the greater its operating leverage, and vice versa.
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