Understand what the current ratio measures, why it matters, and how to use it to assess and improve short-term liquidity.

GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...

When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. David Kindness is a Certified Public Accountant (CPA) and an ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Debt-service coverage ratio (DSCR) looks at a company's cash flow versus its debts. The ratio is used when gauging a business's ability to pay off current loans and take on future financing. If your ...

We believe everyone should be able to make financial decisions with confidence. And while our site doesn't feature every company or financial product available on the market, we're proud that the ...

Human resource departments have a number of ways to analyze and forecast external hiring demand. The ratio analysis formula used in HR is a forecasting tool commonly used to predict annual external ...

The EBITDA Interest Coverage Ratio is a financial metric that measures a company’s ability to meet its interest obligations using its earnings before interest, taxes, depreciation, and amortization ...

“Too little compression will usually result in unmet performance expectations. On the high side [too much compression] carries greater risk in tuning and potential component failure if appropriately ...