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).

Look for high profitability ratios to identify companies efficiently turning revenue into profits. Analyze margin and return ratios to assess how well a company manages its costs and assets.

In retail, a good asset turnover might be around 2.5, but investors in utility stocks generally shouldn't expect an asset turnover ratio of more than 0.5. Example of how to use the asset turnover ...

Interpreting the Inventory Turnover Ratio depends on industry standards and company goals: For example, supermarkets may have a turnover ratio of 10+, while automobile manufacturers might have a ...

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 ...

Bank A's resulting capital-to-risk weighted assets ratio is calculated by entering the formula "=(B2+B3)/B4)" into cell B5. See below for an example: Under Basel II, the minimum CAR is 8% ...

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 ...