Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

There are dozens of financial ratios and their meanings help business owners evaluate the financial health of a company. Financial ratios can be broken into six key areas of analysis: liquidity, ...

Dividing into a given ratio. You can use bar models to divide amounts in a given ratio. For example, Isabel and Geraint share their savings of £96 in the ratio 5 to 3. How much money does each person ...

Capital at risk. The value of your investments can go up and down, and you may get back less than you invest. Any discussion about investing in shares will, sooner or later, mention their ‘price ...

Leverage ratios compare a company's debt to financial metrics like equity or earnings. High leverage ratios suggest potential default risks, guiding investors on company selection. Industry-specific ...