To calculate your profit ratio, you divide net income by sales revenue. Express the profit ratio as a percentage. For example, if your business has sales revenue of $300,000 and expenses of ...

If you're a business owner looking for a loan, your lender will be looking for your solvency ratio. Of course, if you have a startup and are new to running a business, you may not know what a ...

Here are some of the most common, and most useful, financial ratios you can calculate for your business, as well as links to more details about the most relevant ones. Image source: Getty Images. 1.

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

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for ...

Business ratios can sometimes seem mysterious, but they are simply tools to look at the financial ... Some of the typical ratios you can calculate relatively easily to determine your ...

The more debt the company carries relative to the size of its balance sheet, the higher the debt ratio. Total debt cannot be negative, nor can it be greater than total assets (ignoring cases of ...

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 ...

A debt coverage ratio close to zero could be a warning that the company is in very poor financial condition. Any debt coverage ratio above 1 shows that the company could pay back all of its debts.

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 ...