Learn what asset turnover ratio is, the formula, how to calculate it and how it measures a company's efficiency in generating ...

Returning to the example above, let’s take a look at how Apple’s current ratio (as of March 27th, 2021) compared to its quick ratio of 0.83. To calculate the current ratio, we’ll include all ...

Clearly, in this example, Caterpillar’s fixed asset turnover ratio is of more relevance and should hold more weight than Meta ...

Key decision-makers who want to understand a company’s operational efficiency, performance, or financial position should conduct an operating ratio analysis. For example: The operating ratio is ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays ...

"I'd discourage investors from trying to target a specific Sharpe ratio, because it can be impacted over short time periods by external factors, like the yield curve environment, for example," she ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company’s ability to meet its short ...

The following examples of applications of the Sortino ratio formula demonstrate how calculating risk-adjusted returns can benefit investors. The first example is a bond portfolio that has achieved ...

However, no one financial ratio should be used to determine a ... have more assets involved in generating their profits. For example, a railroad or manufacturing company is likely to require ...

The price-to-earnings ratio (P/E) is among the most important and commonly used valuation metrics in the fundamental analysis of stocks. It is also referred to as the price multiple, or the ...

In this example, Caterpillar’s fixed asset turnover ratio is more relevant and should hold more weight for analysts than Meta’s FAT ratio. The asset turnover ratio uses total assets instead of ...