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

The stock turnover ratio is another term for inventory turnover ratio. A stock turnover ratio measures the speed with which your inventory sells after you acquire it. Put another way, a stock turnover ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The value-to-revenue ratio is one of the measures of a company's financial performance, especially relative to other companies in the same industry. Also called enterprise value-to-revenue ratio, this ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

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Accounting profit, calculated as revenue minus all costs, directly impacts stock prices. Economic profit includes opportunity cost, providing deeper insight into resource utilization. Cash flow, often ...