How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how ...

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in ...

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 ...

A common way that analysts and investors measure the performance of a company selling goods is by using financial ratios. One ratio that is useful for evaluating a company's effectiveness in utilizing ...

The value of a business depends on so many variables that calculating the market value of a business is more an art than a science. According to Bankrate.com, banks regularly use more than 150 ...