Financial Analysis

Solvency Ratios

Solvency ratios are useful in measuring a company’s solvency thereby evaluating the company’s financial health. A company’s solvency is determined by how much money it has borrowed as debt …

Efficiency Ratios

Efficiency Ratios are a measure of how well a company is managing its routine affairs. Conceptually, these ratios analyze how well a company utilizes its assets & how well …

Days Sales Outstanding

What is Days Sales Outstanding (DSO)? Days sales outstanding is a financial ratio that helps in calculation of the number of days the accounts receivables remain outstanding. It is …

Negative P/E Ratio

Price-Earnings Ratio (P/E Ratio) Before taking the discussion to Negative P/E Ratio, let’s understand the concept of Price-Earnings Ratio or P/E ratio. It expresses the relationship between the price …

Operating Ratio

Operating ratios is the comparison of an operating expense to the revenue of a business. Operating expense could be any expense or a category of expenses like selling and …

Return on Net Worth

Return on Net Worth Definition Return on Networth is a ratio developed from the perspective of the investor and not the company. By looking at this, the investor sees …

Market Value Ratios

The market value ratios are important for investors, management, etc as these ratios are used to decide whether the valuation of the shares are overvalued, undervalued or at par …