Keep tabs on your savings, investments and overall financial health with these eight simple personal finance ratios.

Financial ratios are powerful tools to help summarize financial statements and the health of a company. Browse Investopedia’s expert-written library to learn more.

As an investor, your objective is to balance the potential for returns with risk. When assessing risk, investors and financial advisors often apply the Sharpe ratio to their investment analysis. Just ...

Learn how to solve proportions effectively. This video breaks down the concept of ratios and demonstrates how to apply them.

The three inputs into a Sharpe ratio calculation are your expected return, the risk-free rate and the standard deviation.

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

A PEG ratio is a tool used in fundamental stock analysis by investors to assess a share's value. It measures a stock's price-to-earnings ratio against the anticipated earnings growth for the ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The real award is that you competed. The golden ratio is famous, but maybe more so as an image of a nautilus shell with a rectangle drawn around it than as the actual idea of the ratio it embodies: “A ...

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...