Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...

Learn essential financial ratios for early bankruptcy detection and protect your investments by identifying warning signs of financial distress in companies.

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

Each business generates financial reports at the end of each month, quarter and on an annual basis. Reports such as the income statement and balance sheet create a snapshot of how a business is ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

For investors who are looking to invest beyond diversified mutual funds or ETFs, individual stocks can be a profitable option. But before you start buying individual stocks, you’ll need to know how to ...

Financial matters need to be handled carefully for an organization to perform well. Your organization can use ratio analysis to evaluate its financial status and gauge its performance. Ratio analysis ...

Opinions expressed by Entrepreneur contributors are their own. Being an entrepreneur for more than 30 years has taught me how important it is to track data about my business. But, I didn’t always take ...

A ratio compares two or more quantities by using parts of a whole. In this bracelet, there are 2 parts red compared to 3 parts blue. The ratio of red beads to blue beads is 2 : 3. This is said aloud ...