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

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 ...

Among the important tools available to investors is ratio analysis. For example, we commonly, perhaps even unconsciously, use the price-earnings ratio as a way of evaluating a stock's price and ...

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 ...

Discover how operating leverage can amplify profits through increased revenue. Learn the calculation and impact of fixed and variable costs on your business.

For those new to investing, or managing their own money, there are plenty of confusing things about the business and therefore plenty of opportunities for mistakes. Whether you are trading actively or ...