The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize ...

A gearing ratio measures a company's level of debt. Here are some guidelines for a good, bad, or normal gearing ratio.

This formula reflects a company's ability to use its cash flow from operations to pay off its debt. A higher cash flow coverage ratio is more promising and indicates a company doesn't have to ...

The current ratio is calculated by dividing the value of a company’s current assets (those likely to be converted to cash or paid out within a year) by the value of its current liabilities ...

Shareholders receive these profits, which they can accept as cash or reinvest into additional shares. The dividend payout ratio, or simply the payout ratio, indicates a dividend's margin of safety.