Learn about the reserve ratio, its role in banking and monetary policy, and how it’s calculated to influence lending and economic stability.

The debt-to-equity (D/E) ratio is a financial metric that measures a company's financial leverage by comparing its total debt to shareholders' equity. It indicates how much debt a company uses to ...

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

A business must possess enough funds to pay current financial obligations at all times to ensure continuity of business operations. Fixed-assets-to-net-worth ratio is an accounting tool that shows you ...

Analysts use a variety of metrics to measure the effectiveness of sales activities. Companies use the data these metrics generate to evaluate profits, market share and other factors that determine a ...

Interest coverage ratio is a measure that assesses a company's ability to manage the cost of its debt. Both investors and bank lenders use the interest coverage ratio to assess a company's financial ...

When you invest in a stock, oftentimes you expect to earn income by receiving dividends. And knowing how much of a company’s earnings it pays out as dividends can tell you a lot about that firm. Enter ...

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 ...

Understanding the compa ratio is essential for evaluating employee compensation. This metric helps ensure salaries are competitive and fair within the market. The MarketWatch Guides team has provided ...

EV/EBITDA is a valuation ratio that compares the total valuation of a company to EBITDA, which is a rough approximation of a business' cash flow generation capability. This article explains the uses ...