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

One way to determine profitability is to calculate the ratio of profits to other financial metrics, such as sales, assets or equity. Common profitability measures include the net income margin, which ...

Subtracting your expenses from your income gives you your bottom-line financial profit but doesn't tell you how you're doing in different areas and how you can improve your operations. You should ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

If you’re a business owner looking for a loan, your lender will be looking for your solvency ratio. Of course, if you have a startup and are new to running a business, you may not know what a solvency ...

Debt-to-income ratio shows how your debt stacks up against your income. Lenders use DTI to assess your ability to repay a loan. Many, or all, of the products featured on this page are from our ...