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.

Explore Financial Ratios

What Is the Formula for Weighted Average Cost of Capital (WACC)?
Assets & liabilities
What Is the Formula for Calculating the Current Ratio?
Business Woman Thinking Account
What Is the Acid-Test Ratio?
Asset Turnover Ratio: Formula and Examples
Understanding the Cash Ratio
Investing
What Is the Current Ratio?
Debt-to-Equity (D/E) Ratio
Balancing the ledger
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
Midsection of Businessman Using Calculator and Laptop at Desk
What Are Liquidity Ratios?
Businessperson makes calculations on a white board
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)
businessperson analyzing business charts on a clipboard
What Is a Solvency Ratio?
Understanding Total-Debt-to-Total-Assets
Understanding the CAPE Ratio
Business People Discussing In Office
Compound Annual Growth Rate (CAGR)
Book Value vs. Market Value: What's the Difference?
What's the Difference Between ROI and IRR?
Google's stock price appears on the NASDAQ Marketsite
What's Considered a Good PEG Ratio?
Business finance
EBIT vs. EBITDA: What's the Difference?
Net Present Value
What Is the Formula for Calculating Net Present Value (NPV)?
What Is Considered a Good Expense Ratio?
Many rolls of American Dollars lined up on a beige background
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?
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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)?
Mixed race entrepreneur taking inventory in yarn store
How to Calculate the Inventory Turnover Ratio
Cropped section of businessperson's hands using a tablet showing financial data
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
Value
Understand the Weaknesses of the Price-to-Book (P/B) Ratio
Average Annual Growth Rate (AAGR)
Accounting
Understanding the Book-to-Market Ratio
Stocks and shares
Book Value Per Share (BVPS)
Share price data from investors portfolio on a laptop computer screen
Capital Asset Pricing Model (CAPM)
Capital Expenditure (CapEx)
Understanding the Degree of Operating Leverage
What Is a Dividend Payout Ratio?
Bank vault
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)
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The Ins and Outs of Expense Ratios
Why Goodwill Is Unlike All the Other Intangible Assets
Business Money growth Working on Project About Business Growth
Gross Margin Definition
Woman's Hands Counts on the Calculator
Why the Interest Coverage Ratio Matters
Inventory Turnover: Formula and Calculation
Internal Rate of Return (IRR)
Man Hand With Digital Tablet Analyzing Stock Market Growth
Leverage Ratio
Leverage