Explore our comprehensive guide to financial ratios and investment metrics. Enhance your analytical skills and make informed investment decisions.
Profitability Ratios
Operating Margin
Measures profit per dollar of sales after accounting for variable costs.
Learn MoreProfit Margin
Measures the amount of net income earned with each dollar of sales generated.
Learn MoreReturn on Equity (ROE)
Measures the amount of net income returned to shareholders relative to their investment.
Learn MoreReturn on Invested Capital (ROIC)
Measures the return on the capital invested in a company.
Learn MoreLiquidity Ratios
Quick Ratio
Measures a company's ability to meet its short-term obligations with its most liquid assets.
Learn MoreCash Ratio
Measures a company's ability to meet short-term obligations with cash and cash equivalents.
Learn MoreEfficiency Ratios
Asset Turnover
Measures the efficiency of a company's use of its assets in generating sales revenue.
Learn MoreInventory Turnover
Measures how many times a company's inventory is sold and replaced over a period.
Learn MoreReceivables Turnover
Measures how efficiently a company uses its assets by quantifying how many times it collects receivables during a period.
Learn MoreValuation Metrics
Price-to-Earnings Ratio (P/E Ratio)
Measures the price investors are willing to pay for each dollar of a company's earnings.
Learn MorePrice-to-Book Ratio (P/B Ratio)
Measures the price investors are willing to pay for each dollar of a company's book value.
Learn MoreEarnings Per Share (EPS)
Measures a company's profitability by calculating the amount of net income earned per share of common stock.
Learn MoreEnterprise Value/EBITDA (EV/EBITDA)
Measures the total value of a company relative to its operating earnings.
Learn MoreEnterprise Value/EBIT (EV/EBIT)
Measures the total value of a company relative to its earnings before interest and taxes.
Learn MoreOther Metrics and Analyses
Dupont Analysis
Decomposes a company's return on equity into three components: profit margin, asset turnover, and financial leverage.
Learn MoreDays Inventory Outstanding (DIO)
Measures the average number of days it takes a company to sell its inventory.
Learn MoreEBITDA
Measures a company's operating profit before interest, taxes, depreciation, and amortization.
Learn MoreEnterprise Value (EV)
Measures the total value of a company, including market capitalization, debt, and cash.
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