The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...
The quick ratio, often referred to as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (cash + ...
Liquidity ratios assess if a company can cover short-term debts with available assets. Key ratios include cash, quick, current, and operating cash flow ratios. A liquidity ratio over 1 suggests a ...
The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.