If a company’s stock is trading at $100 per share, for example, and the company generates $4 per share in annual earnings, the P/E ratio of the company’s stock would be 25 (100 / 4).

For example, cash is a more liquid asset than slow-moving inventory. Therefore, a high Current Ratio may be misleading if it’s driven by less liquid assets. Timing of Cash Flows: It doesn’t ...

let’s consider a hypothetical example. Company ABC has an EBIT of $1,000,000 and an interest expense of $100,000. This means that Company ABC’s Interest Coverage Ratio is 10. In this scenario ...

An expense ratio is the amount of money you pay over the course of a year to own a mutual fund or an exchange-traded fund (ETF). It's what an investment company charges investors and represents ...

Business assets are usually broken out through the quick and current ratio methods to analyze liquidity types and solvency. Examples of liquid assets may include cash, cash equivalents ...