When you want to get an idea of a company's financial condition, ratio analysis is one of the tools of the trade. In the following article, you'll learn about two useful balance sheet ratios: the debt ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

Fixed assets and working capital combined make up the major resources used by businesses to generate income. The ability of a company to use these resources efficiently directly affects profitability.

The return on assets (ROA) ratio is a financial metric that helps investors and business owners assess how efficiently a company is using its assets to generate profit. By examining this ratio, ...

Here are some important metrics you can calculate that can tell you a lot about your business' performance. Calculating financial ratios is an important component of analyzing a business that can be ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA ...

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 ...

Don’t get obsessed with accounting for every penny. Ballpark values will do, especially when it comes to tangible, illiquid items like collections. See below for definitions of terms in this ...