armember-membership domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home1/wanrru6iyyto/public_html/wp-includes/functions.php on line 6114ARMember domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home1/wanrru6iyyto/public_html/wp-includes/functions.php on line 6114Business ratios are tools used to compare similar businesses within the same industry. They are financial metrics evaluating market valuation, performance, liquidity, leverage and activity. In general, business ratios are an excellent tool to value stocks.
With stock investing, one of the valuation ratios used is the price to book ratio. It identifies the spread between book value and market value for a share of stock.
High Price to Book Ratios – Proper Interpretation and Evaluation Read More »
Valuation ratios are the only group of business ratios that are externally and not internally driven. The market dictates valuation ratios.
The price to sales ratio is a marginal valuation ratio at best. It is really an offshoot of an antiquated concept of valuing a business.
Price to Sales Ratio: A Poor Indicator of Value Read More »
The most common thought among business owners, consultants, investors and students is the ‘bottom line’. The proper word is of course ‘PROFIT’.
Performance Ratios Read More »
Leverage ratios refers to the use of borrowed funds to increase the profits of the company.
The price to cash flow ratio is a valuation tool used to assist buyers and sellers of stock in determining timing of purchases or the disposition of shares.
Price to Cash Flow Read More »
The majority of activity ratios measure the ability of the company to turn assets into earnings.
The gross domestic product comprises 20 private industry sectors and two government groups. All together 22 distinct sectors contribute to the gross domestic product (GDP).
20 Private Industry Sectors Read More »
Liquidity ratios are a group of ratios used to measure the ability of a business operation to meets its current obligations.
Another performance ratio used in business is return on equity. It is similar to return on assets except return on equity uses one section of the bottom half of the balance sheet.
