The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Discover how ratio analysis simplifies comparing company financial health. Learn key ratios like P/E and net profit margin to boost your investment decisions.

You can use breakeven analysis for more than calculating the number of units you must sell to cover your fixed and variable costs. Breakeven analysis also pinpoints how much net sales revenue you must ...

Businesses exist to produce goods or services at a profit. A variety of financial ratios can help evaluate how well a business is performing financially. The gross profit margin is one of the most ...

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

Discover how gross profit and operating income differ and why both are crucial in assessing a company’s financial health. Get ...

Profitability analysis is one of the best ways to evaluate the prospects of a company. It is used in detecting a profitable company over a loss-making one. A company with a high level of sales surplus ...