Financial Ratios & Valuation
Profitability, liquidity, efficiency, and valuation metrics, each with the formula and a worked example. The numbers analysts and lenders use to read a business.
Financial Ratios & Valuation: all guides
- Break-Even Analysis: Formula and How to Calculate It
- Current Ratio: Formula, Meaning, and What’s Good
- Days Sales Outstanding (DSO): Formula and Meaning
- Debt-to-Equity Ratio: Formula and What It Tells You
- Discounted Cash Flow (DCF): How the Valuation Works
- Earnings Per Share (EPS): Formula and Types
- Enterprise Value: Formula and Why It Beats Market Cap
- Free Cash Flow: Formula, Types, and How to Calculate It
- Gross Profit Margin: Formula and How to Improve It
- Net Profit Margin: Formula and What It Reveals
- Operating Margin: Formula, Meaning, and Benchmarks
- Quick Ratio (Acid-Test): Formula and Interpretation
- Return on Assets (ROA): Formula and What’s Good
- Return on Equity (ROE): Formula and DuPont Breakdown
- The Cash Conversion Cycle: Formula and Why It Matters
- The P/E Ratio: Formula, Meaning, and Limits
- WACC: The Weighted Average Cost of Capital, Explained