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

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...

Subtracting your expenses from your income gives you your bottom-line financial profit but doesn't tell you how you're doing in different areas and how you can improve your operations. You should ...

Successful businesses depend on diligent managers to analyze key factors that influence profitability and make changes to the business based on their analyses. Managers use a variety of statistical ...

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. A loan-to-value (LTV) ratio is a ...

Companies prefer raising funds through debt capital as it is cost-effective. In this way, they can save themselves from paying high-interest rates if they raise through financial institutions.

How would you assess your financial situation? Check out this guide to figuring out your debt-to-income ratio and the importance of knowing your DTI ratio. A DTI ratio is a tool that indicates the ...