Size up potential investments with profitability ratios, liquidity ratios, solvency ratios, and valuation ratios. Use them in combination for a comprehensive view.

The retention ratio measures the percentage of a company’s earnings that are reinvested rather than distributed as dividends.

One of the key metrics used to gauge the efficiency of a business is the activity ratio. This type of financial measurement ...

Bruns, William J., Jr. "Introduction to Financial Ratios and Financial Statement Analysis." Harvard Business School Background Note 193-029, August 1992. (Revised September 2004.) ...

return-on-investments ratio and investment-assets-to-gross-pay ratio. If you consult a financial planner or advisor for help managing your money, they'll often use ratios to analyze your financial ...

Financial ratios are useful tools for investors to better analyze financial results and trends over time. These ratios can also be used to provide key indicators of organizational performance ...