How to Calculate Financial Ratios of Performance. Financial ratios allow you to break down your company's financial statements and see how it is performing from different angles. Whether you are ...

The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt obligations based on its current ...

Alok Patnia writes about how to calculate the key financial ratios to evaluate your startups performance.

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

However, beginning inventory is a fundamental part of both calculations. Another use of the beginning inventory is when you want to calculate your average inventory in a given accounting period.

In the following article, you'll learn about two useful balance sheet ratios: the debt ratio and the equity multiplier, and you'll learn the relationship between the two and how to calculate one ...

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

A debt-to-equity ratio is a way to measure a company's financial position. What does the ratio tell us? And how do investors ...

Understand the basics of the current ratio, including its use in assessing a company's liquidity and learn how it is calculated in Microsoft Excel.

One of the areas where management has the most control, and therefore a key consideration of managerial accounting, is a company's selling and administrative expenses.

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals ...