When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

The stock turnover ratio is another term for inventory turnover ratio. A stock turnover ratio measures the speed with which your inventory sells after you acquire it. Put another way, a stock turnover ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

Human resource departments have a number of ways to analyze and forecast external hiring demand. The ratio analysis formula used in HR is a forecasting tool commonly used to predict annual external ...

The times interest earned ratio, or interest coverage ratio, measures a company's ability to pay its liabilities based on how much money it's bringing in. The ratio indicates whether a company will be ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...