The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize ...

Learn how to calculate and use the P/E ratio when analyzing an investment and what the financial services industry P/E ratio average is.

You can also calculate the dividend payout ratio by taking the dividend per share and dividing by the earnings per share, or EPS: Dividend per share / earnings per share = dividend payout ratio $4 ...

If a company's P/E ratio is 10, that means its shares cost 10 times the profit it makes on a per-share basis in a year. To calculate a company's P/E ratio, divide the price of one share of that ...

The ratio has 2 parts that are orange - this gives the numerator of the fraction. Find the value of one part by dividing the whole by the total number of parts. Calculate the value of each share ...

The Sharpe ratio is one way to capture this risk-versus-reward detail and give investors extra insight into their assets' performance. Some investors use an index fund as a benchmark and attempt ...