The price-to-book ratio, or P/B ratio, looks at a company from a different angle. It compares the stock’s market ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

Fixed assets and working capital combined make up the major resources used by businesses to generate income. The ability of a company to use these resources efficiently directly affects profitability.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Gordon Scott has been an active investor and ...

Return on investment ratio analysis determines a company's efficiency in investments. Simply put, it shows how profitable an investment will be. Several ratios within this category are frequently ...

One way to look at dividend investing is that it's a simpler path to cash flow than real estate or other means and takes less time to pull off. After you research dividend stocks and invest in a few ...

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 ...

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

PE ratio compares a company’s stock price with its earnings per share and helps determine if it is fairly priced. Many, or all, of the products featured on this page are from our advertising partners ...

Rachael has a Bachelor’s degree in mass media from Wilson College, Mumbai and a Master’s degree in English from Pune University. At its core, the Fixed Charge Coverage Ratio measures a company’s ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...