# Financial Ratios

Financial ratios are powerful tools to help summarize financial statements and the health of a company or enterprise. Learn the most useful financial ratios here.

How to Calculate the Required Rate of Return (RRR)

Solvency Ratios vs. Liquidity Ratios: What's the Difference?

What Is Considered a Good Price-to-Book Ratio?

Calculate the Dividend Payout Ratio Using Just the Income Statement

How to Calculate Return on Assets (ROA) With Examples

### Explore Financial Ratios

What Is the Formula for Weighted Average Cost of Capital (WACC)?

What Is the Formula for Calculating the Current Ratio?

What Is the Acid-Test Ratio?

Asset Turnover Ratio: Formula and Examples

Understanding the Cash Ratio

What Is the Current Ratio?

Debt-to-Equity (D/E) Ratio

How to Best Use the Debt-To-Capital Ratio

What Is a Debt Ratio?

What Is an Equity Multiplier?

Fixed Asset Turnover Ratio

Why Gross Profit Margin Matters

What Are Liquidity Ratios?

Price-to-Sales (P/S) Ratio

What the Price-to-Book (P/B) Ratio Tells You?

The Importance of Profitability Ratios

What Is the Quick Ratio?

Ratio Analysis

Return on Equity (ROE)

Return on Assets (ROA)

What Is a Solvency Ratio?

Understanding Total-Debt-to-Total-Assets

Understanding the CAPE Ratio

Compound Annual Growth Rate (CAGR)

Book Value vs. Market Value: What's the Difference?

What's the Difference Between ROI and IRR?

What's Considered a Good PEG Ratio?

EBIT vs. EBITDA: What's the Difference?

What Is the Formula for Calculating Net Present Value (NPV)?

What Is Considered a Good Expense Ratio?

What Is the Formula for Calculating Free Cash Flow (FCF)?

How Do I Calculate the Degree of Operating Leverage?

Earnings Per Share (EPS) vs. Diluted EPS: What’s the Difference?

How Do the Current Ratio and Quick Ratio Differ?

How Do You Calculate Shareholders' Equity?

What Is the Formula for Calculating Earnings per Share (EPS)?

How to Calculate the Inventory Turnover Ratio

How to Calculate Return on Equity (ROE)

The Difference Between Levered and Unlevered Free Cash Flow

Assessing a Stock's Future With the Price-to-Earnings Ratio and PEG

Understand the Weaknesses of the Price-to-Book (P/B) Ratio

Average Annual Growth Rate (AAGR)

Understanding the Book-to-Market Ratio

Book Value Per Share (BVPS)

Capital Asset Pricing Model (CAPM)

Capital Expenditure (CapEx)

Understanding the Degree of Operating Leverage

What Is a Dividend Payout Ratio?

Debt-Service Coverage Ratio (DSCR)

How to Use the DuPont Analysis to Assess a Company's ROE

Earnings Per Share (EPS)

Understanding Enterprise Value (EV)

The Ins and Outs of Expense Ratios

Why Goodwill Is Unlike All the Other Intangible Assets

Gross Margin Definition

Why the Interest Coverage Ratio Matters

Inventory Turnover: Formula and Calculation

Internal Rate of Return (IRR)

Leverage Ratio

Leverage