Financial ratios allow you to break down your company's financial statements and see how it is performing from different angles. Whether you are creating a proposal for new investors, seeking bank ...

A ratio of debt to equity is calculated by dividing total debt by the amount of shareholders' equity, found near the bottom ...

Even though the income statement normally attracts the most attention from investors, the balance sheet is the true starting point for understanding a company’s financial position. It shows how much a ...

One of the most useful metrics in assessing a company's profitability is earnings per share, and it can be calculated from information found on that company's balance sheet and income statement, two ...

One of the most effective ways to compare two businesses is to perform a ratio analysis on each company's financial statements. A ratio analysis looks at various numbers in the financial statements ...

Many investors focus on how much a company pays in dividends. Most companies report their dividends on a cash-flow statement or in a separate accounting summary in their regular disclosures to ...

Invested capital typically refers to a combination of shareholders' equity and long-term debt, both of which can be found on the balance sheet. Shareholders' equity is generally the last item listed, ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Somer G. Anderson is CPA, doctor of ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...