Margin of Safety

7 years ago

Everybody needs to break even, so this ratio will give you the insight of what goes too much or too…

Loan to Value

7 years ago

Abbreviated as LTV, the loan to value ratio is a risk assessment measurement. It is used to calculate the amount…

Internal Rate of Return

7 years ago

The internal rate of return, also abbreviated as IRR, is used to identify which future projects or capital investments will…

Interest Coverage Ratio

7 years ago

The financial ratio known as interest coverage ratio determines whether a company is able to make interest payments on its…

Gross vs. Net

7 years ago

Gross and net usually refer to income and it is also something that seems quite difficult to understand for some…

Gross Profit

7 years ago

The profitability ratio called gross profit (also known as gross profit margin) is used to calculate the percentage of sales…

Gross Margin Ratio

7 years ago

Also a profitability ratio, the gross margin ratio compares a business’ gross margin to its net sales, measuring if a…

Goodwill to Assets

7 years ago

The financial measurement called goodwill to assets is used to compare the intangible assets of a company – like a…

Free Cash Flow

7 years ago

Usually abbreviated as FCF, the Free Cash Flow is an efficiency as well as a liquidity ratio. It calculates how…

Fixed Charge Coverage Ratio

7 years ago

Whether a company is able to pay off its fixed charges or expenses with its own income or not –…

Fixed Asset Turnover Ratio

7 years ago

If you’re wondering what this ratio is, you’re just about to find out. It’s an efficiency ratio that measures a…

Return on Equity

7 years ago

Before we engage in explaining the formula, you need to know what the difference between a shareholder and a stakeholder…