The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

It’s essential for investors of all levels to navigate the complexities of financial ratios. Today, we unravel the ‘Current Ratio,’ a key metric used to assess a company’s financial health. The ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

Use the Sharpe ratio to evaluate an asset's risk vs. return Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple ...

Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. David Kindness is a Certified Public Accountant (CPA) and an ...

Debt-service coverage ratio (DSCR) looks at a company's cash flow versus its debts. The ratio is used when gauging a business's ability to pay off current loans and take on future financing. If your ...

Beginner investors find it complex to learn about the stock market and invest based on the gained knowledge and end up investing based on hear-say and intuition. This becomes the main reason for ...

The EBITDA Interest Coverage Ratio is a financial metric that measures a company’s ability to meet its interest obligations using its earnings before interest, taxes, depreciation, and amortization ...